(Average Revenue per Paying User) calculated by dividing total revenue by the number of active paying users. It’s a metric that shows the average revenue generated by each paying user. In other words the ARPPU shows the average revenue generated by users who spend money on your game.
lt is your daily income divided by the number of players spending that day. Considering that only 1% of free to play players spend money today, ensuring that those who spend money on your game spend as much money as possible will positively affect your incomes very seriously.
In terms of pricing, optimum in-game product pricing is made with these tests. This point is a very sensitive issue for gamers and game companies. You must be neither taking too much money nor too little money from players' pockets. Excess money taken from the pockets of the players may cause the players to quit the game after a certain time.
If the money taken from the pockets of the players is low, the opportunity cost of the business arises. That's why performing pricing tests on players is crucial to maximizing your ARPPU and therefore your revenue.
The concept of ARPPU is one of the most important metrics that show how much money you make from your game.