Understanding ARPDAU and its Importance

The business of mobile app development solely depends on the revenue generated. It is the only magnitude by which we can judge the health and popularity of a mobile app on the app store/play store. Thus it becomes much more critical to understand ARPDAU and how the game of mobile app monetization works.

What is ARPDAU?

The full form of the acronym is Average Revenue Per Daily Active User. From the full form, we can understand that ARPDAU calculates the money earned by a mobile app per head. The metric is necessary to understand as it determines how many monetary benefits the mobile app is bringing for the organization.

The revenue is calculated based on earnings from subscription, in-app purchases, & advertisements. The revenue is calculated daily (24 hour period), and the revenue earned in the day is divided by the number of active users of the mobile app. It is a fantastic way to analyze and keep a close watch on the mobile app's income. By ARPDAU, you can do periodic changes in your app monetization methods to increase the revenue and the number of users.

The basic definition of ARPDAU just shows the tip of the plant, whereas it is much game-changing than the definition suggests. Let us now have a detailed analysis of the importance of ARPDAU in the mobile app market.

Importance of ARPDAU

ARPDAU gives you the minutest detail about how your app monetization process is working. For example: if your mobile app has certain things only in the paid version and you reduce the price, you will see more people subscribing to the paid version, thus increasing the inflow of money.

ARPDAU lets you learn and see the opportunities through which you can earn more through your mobile app without giving extra burden to the pockets of your customers. It eradicates every possible fluctuation in your active user base and gives you the clear picture of the revenue made on the given day.

As the impact of every change is visible, the organization can neatly design their app monetization strategy to garner profit in the long run. 

Given the fact that ARPDAU is very important, it is also essential to increase it, and there are many factors that it depends on. We will show you four specific methods to increase the ARPDAU and thus having a good run in the mobile app market.

Segment your targeted audience

In order to boost your ARPDAU, you need to segment your audience and cater to them according to their requirements. Make sure that the in-app purchases (IAP) are according to their usage pattern. For example, there is no point in giving concession on Halloween in the country where it is not widely celebrated.

Just charge the audience for the services that they take from your mobile app and subtly provide them offers through ads or another plug-in after thoroughly going through the things they like and prefer.

Segmenting the uses will see an increment in average ad engagement as the user will be more intended to buy things and thus have a steep rise in ARPDAU.

Changing the ad placements in the mobile app

You need to experiment with the in-app ad placements in your mobile app. Because, if the advertisements are becoming a hindrance to the user, it may hamper your app monetization process significantly. Untimely and misplaced ads are less likely to work well.

Timing and placement is crucial if you want to garner more money through ads. For example, if you have a dating app, place the ad between the swipes at regular intervals, or you have a sports app, you can place the ads in accordance with the tournament.

The whole idea is to give the users a hassle-free experience and yet having ads in proper proportion. In order to optimize the positioning of your app, do A/B testing and be sure that the placement isn’t haywire.

Give special attention to the type (audio, video, text) and the frequency of the ads during the placement and do it according to the requirement and conditions. The optimal rate of the ads would make sure that your mobile app engagement is increased and, thus, with it the ARPDAU rate as well.

Make the non-paying users purchase

The subtle art of being the king of mobile app monetization is to make that section of your user’s purchase who isn’t interested in putting money in in-app purchases (IAP). You can use video ads that contain certain kind of cash or coupon rewards in order to make the non-paying customers buy for a specific service.

The reward can be equal to the in-app purchases so that the user gets a glimpse of the offers and services that he/she might get if he/she chooses the paid version. Research has also shown that if customers get rewards through video ads, they are more likely to use in-app purchases.

The in-app purchase rate goes up 600% (6 times) if the users find the video ads reward worthwhile and exciting.

Also Read:-Improve your Mobile App User Experience

Video Ads

As discussed in the previous point, video ads play a mighty important role in increasing the ARPDAU. Including them in the mobile app can increase the app monetization by 20% to 40%.

Shocked? Well, it is proven in various circumstances and on a different set of customer behavior. Yes, the click-through rates on a rewarded video rise exponentially (4 to 5 times higher than usual) as it gives the users a better reason to engage and compels them to buy things in the mobile app.

Apart from being a fun engagement for the users, the users know that through the rewarded ads, they are bound to get something substantial like coins, gift coupons, discounts, mouth-watering offers. The video ads can be the best ally for the organization if they want to increase the ARPDAU and revenue through app monetization.

Summarizing

ARPDAU is very important for the organization in order to understand the app monetization techniques and to verify them according to the situation. Increasing it gives you a better chance of having higher revenue from your mobile app and also expands the user base.

The methods are given to increase the ARPDAU also plays a vital role in letting the mobile app developers use it full allegedly to the benefit of the mobile app, and the revenue generated through it.