Average revenue per user
Average revenue per user (ARPU), sometimes known as average revenue per unit, is a measure used primarily by consumer communications, digital media, and networking companies, defined as the total revenue divided by the number of subscribers.
The term is used by companies that offer
Digital media and social media companies, which often rely on advertising revenue generated by users with free accounts, pay particularly close attention to their ARPU. Variations in ARPU reflect changes in the companies' ability to generate revenue and heavily impact their stock prices.
There is a trend[
Calculation
To calculate ARPU, a standard time period must be defined. Most telecommunications carriers operate by the month. The total revenue generated by all units (paying subscribers or communications devices) during that period is determined. Then that figure is divided by the number of units. Because the number of units can vary from day to day, the average number of units must be calculated or estimated for a given month to obtain the most accurate possible ARPU figure for that month.[3]
Also related is the ARPPU (Average Revenue Per Paying User), which is calculated by dividing up the revenue amongst the users who paid anything at all. That yields a figure that is significantly larger than ARPU. For example, in the case of a subscription game that has a
A related measure is the ARPDAU (Average Revenue Per Daily Active User). Other common measure is ARPC (Average Revenue Per Customer), some customers generate higher revenue than other because these customer contract more telecommunications services or generate more use than other customers and so these customer have a higher ARPC, than others customers for the same telecommunication company.
Average margin per user (AMPU) is another criterion for measuring the success of
ARPU is widely used by Internet Protocol television (
See also
References
- ^ "Facebook Made Almost $20 in Average Revenue per User in Q4, A Big Jump". February 2017.
- ^ Bagga, Atul (October 10–13, 2011). Emerging Trends In Games-as-a-Service. Game Developers Conference. Retrieved September 17, 2018.
- ^ "average revenue per user or average revenue per unit (ARPU)". SearchTelecom. Retrieved 20 May 2014.
- ^ "Forget the Revenues - Focus on Margins", MobileIN, April 4, 2005