In game monetization, ARPU (Average Revenue Per User) is your baseline metric for monetization efficiency. It tells you how much each player — payer or not — contributes on average over a period of time.
1️⃣ Definition
ARPU measures the average revenue generated per active user, regardless of whether they made a purchase or just watched ads.
Metric | Formula |
ARPU | Total Revenue ÷ Total Active Users |
📍Example: $10,000 revenue ÷ 100,000 players → ARPU = $0.10
2️⃣ Why ARPU Matters
Use Case | What It Enables | Design Insight |
Scale health check | Measures efficiency across your whole user base | Is your economy healthy — or just whale-driven? |
UA strategy | Informs CPI and ROAS targets | Can you afford your current acquisition cost? |
LiveOps ROI | Helps evaluate event effectiveness | Did the new feature boost monetization? |
System tuning | Guides pricing, pacing, ad load | Are you balancing spend, ads, and retention? |
📍ARPU is not about whales — it’s about how well your full player base is monetized.
3️⃣ Interpreting ARPU
ARPU Range | Interpretation | Game Context |
$0.01–$0.10 | Light monetization | Ad-heavy casual or hypercasual |
$0.10–$0.50 | Balanced | Casual F2P with hybrid economy |
$0.50–$2.00+ | High-performing | Midcore, gacha, PvP-driven |
$5.00+ | Whale-dominated | RPGs, MMOs, 4X strategy |
📍Low ARPU can be fine — if paired with high retention or low CPI.
4️⃣ ARPU and Related Metrics
Metric | Measures | Focus |
ARPU | Avg revenue per all users | Monetization efficiency |
ARPPU | Avg revenue per paying user | Monetization depth |
Conversion Rate | % of users who paid | Monetization reach |
LTV | Total lifetime value per user | Long-term monetization health |
📍Use ARPU as your day-to-day compass. Use LTV for long-term decisions.
5️⃣ What Influences ARPU?
Factor | Effect |
Genre | RPG > casual > idle (typically) |
Payer segmentation | Whales boost ARPU if others don’t pay |
Ad monetization | Lifts ARPU even with low IAP conversion |
Event cadence | Frequent events = more spend triggers |
Offer quality | Clear, fair pricing improves conversion |
Region | ARPU varies drastically by country and culture |
📍You can’t “average your way” to profit. Design each system to earn value — then optimize how they work together.
6️⃣ Game Examples
Game | ARPU Profile | Takeaway |
Merge Mansion | $0.12 ARPU | Strong IAP conversion in casual genre |
RAID: Shadow Legends | $0.80+ ARPU | Heavy spender reliance + competitive pressure |
Archero | $0.30 ARPU + strong ads | Balanced monetization via IAP + rewarded video |
✅ ARPU Checklist
📍High ARPU = effective economy. Stable ARPU = sustainable economy.
Summary
Term | ARPU – Average Revenue Per User |
What it tracks | Revenue per user, regardless of spend |
Why it matters | Baseline for monetization health |
Used for | ROAS decisions, economy tuning, event ROI |
Paired with | ARPPU, Conversion Rate, LTV, Retention |
📍ARPU doesn’t just reflect revenue — it reflects how well your design earns trust. A strong ARPU means that players see value, not just price.