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ARPU (Average Revenue Per User)
Definition
The average revenue generated per user over a specific period. Calculated as Total Revenue / Number of Users. Important for subscription and gaming businesses.
In Detail
ARPU provides a snapshot of how effectively a business monetizes its user base. In mobile gaming, ARPU ranges from $0.50-$3.00 per month for casual games to $10-$50+ for casino-style apps. For streaming services, ARPU is straightforward — Netflix reports approximately $11-$17 ARPU depending on the region. In the gambling industry, online casinos track ARPU aggressively because it directly determines how much they can pay affiliates. A casino with $80 monthly ARPU can afford much higher CPA rates than one with $20 ARPU. The metric becomes particularly useful when segmented: ARPU by traffic source reveals which channels bring the most valuable users. A media buyer might discover that Google Search traffic generates $120 ARPU while push notification traffic only delivers $30 ARPU, justifying higher CPC bids on Google. In affiliate marketing careers, ARPU is a metric you encounter when working for advertisers, product companies, or as an analyst. Affiliate managers use ARPU data to negotiate payout structures — if a specific affiliate consistently sends traffic with above-average ARPU, the network can offer them a premium CPA or better RevShare percentage. Understanding how your traffic quality impacts the advertiser's ARPU gives you leverage in negotiations and helps build long-term partnerships rather than transactional relationships.
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