ARPU (Average Revenue per User) is a measure to determine the average revenue that an online casino generates from one player. To put it simply, this is the amount of money that a gambling company receives for a certain period from one player.
ARPU shows the effectiveness of the gambling resource: the higher ARPU, the bigger revenue.
You can calculate the average income yielded from one gambler through the formula:
ARPU = Revenue for Period N / Number of players
Revenue for period N means the amount of total income from all users without exception for the selected period, and Number of players is the number of gamblers attracted during a specified time frame.
ARPU is needed to:
determine the demand for the products/services offered by the gambling resource in real time; in this case, the quarterly value of Average Revenue per User for the analysed period is calculated;
get information about the performance of different sales channels. For example, the operator runs land-based and online casinos. To compare their productivity, ARPU is collected for both projects;
determine the quality of traffic. By calculating ARPU for players coming from different channels, you can assess the quality of each traffic channel. This will help you to define the priority channel and adjust the marketing promotion strategy.
evaluate the quality of the advertising campaign and marketing promotion in general. Comparing the average income per one gambling user will allow you to properly assess the traffic quality.
What is the difference between ARPU and ARPPU?
ARPPU (Average Revenue per Paying User) is the average revenue a paying player generates during a certain period.
The main difference between ARPU and ARPPU is that the latter measure covers only those players who made payments for a certain period. Calculating ARPU takes the total revenue divided by the number of actively paying gamblers. ARPPU profitability measure shows the reaction of paying gamblers to the conditions of your gambling resource.