ARPU (Average Revenue per User) is a measure that is primarily used by telecommunication companies or Pay-TV and streaming services.
It is defined as the total revenue of a company divided by the number of users or customers. The ARPU can be calculated for different time periods such as weeks, months or years. It can also be specified by the determination of categories e.g. demographic features. It is a good measure to assess the worth of every single customer for a company.
The ARPU is especially useful for Pay-TV or streaming services. As it is calculated by the customer base of a company, it can supply important information about the acceptance of premium offers.
Apart from that, it is relevant for the calculation of other units like the Customer Lifetime Value (CLTV) or the marketing budget for mobile devices. Therefore, the ARPU is an important measurement unit for online marketers.