ARPDAU

The key metric in a bidding environment is Average Revenue per Daily Active User, which measures revenue overall, not performance by the network. lt is calculated by dividing daily revenue by daily unique active users. It’s a metric for measuring the success of the publisher’s monetization strategy.

You may see CPMs decrease on some networks. This often means that the network previously only had access to the highest value users due to the price floor and location in the waterfall. Thanks to bidding, the network now has full access to all impressions and can win low value users as well. This may negatively impact CPMs, but will positively impact average revenue per daily active user overall.

It is therefore important to remove floor prices for bid networks. Floor prices can increase CPMs but result in lost impressions and lower overall ad revenue. To measure the success of the offer, measure the Average Revenue per Daily Active User before bidding and compare this revenue with after the bid was placed.