ARPU

Definition of ARPU

The Average Revenue Per Unique visitor, a metric that reflects the revenue earned by a website for each visit.

ARPU in Depth

This metric can also be presented as revenue per visit (RPV), revenue per unique (RPU), or revenue per unique visit (RPUV). All of these terms refer to the same metric, which can be calculated through a simple formula:

ARPU = Revenue / Unique Visits

This metric traditionally incorporates multiple revenue streams. For example, if a site monetizes through display ads, affiliate marketing, and e-commerce the ARPU metric would include revenue associated with each of these strategies.

This metric is the ultimate measure of how effectively a site is monetizing its traffic. It also reflects one of the two primary ways a site can make more money: 1) get more visits or 2) improve ARPU.

ARPU also indicates the amount of money that a site can expect to generate for each additional visitor it receives. For example, if a site has an ARPU of $0.01 could expect to earn an incremental $100 for every 10,000 new unique visitors it attracts.

ARPU vs. ARPU

The concept of average revenue per user, also abbreviated ARPU, is relevant to a number of different businesses. For example, a cable company may track ARPU to measure the amount of money made from each of their subscribers.

The revenue generated per user will typically be significantly higher than the revenue from a visit to a web site.

See Also

Related terms include: Monetization, Split Testing.