What is Impressions Per Daily Active Users (IMPDAU)? To put it simply, IMPDAU is a KPI used in the mobile app world that represents the number of ads that are served on average to each of your active users on a given day.
How do you calculate Impressions Per Daily Active User (IMPDAU)?
The formula for IMPDAU is the number of daily impressions divided by the number of daily active users. To truly understand how to calculate IMPDAU, let's break down both components; Daily Impressions and Daily Active Users.
Daily active users (DAU) is a metric that measures the total number of users that log in and engage with your product on a daily basis. How a company or mobile app creator defines an "active user" can vary in depth from one company to another but in it's simplest form, it refers to one unique user logging into your app, platform, or piece of software.
Daily active users is often used as an important health check KPI by founding teams to answer the question: are our customers actually using our product or app? Within DAU, there are new users and returning users; together, they equal the total DAU.
Daily Impressions or sometimes referred to as Ad Impressions are counted by Ad Networks (think Google, Facebook, Instagram, etc.) whenever an ad is displayed to a user within an app. Daily Impressions vs. Ad clicks should not be confused with each other. In other words, impressions in Ad Marketing tells a mobile app creator or founder how many times an ad was viewed by users using their mobile app. The ad impressions is not contingent with how many times the ad was actually clicked.
For example, let's say you created a mobile app and it's been installed 1,000 times and you've got 100 DAUs. Let's say your mobile app is free to download and you decide you want to monetize your app by showing ads to your users. You sign up for Google AdMob and start showing ads to your users. In this example, you have extremely engaged users and in a day, one of your users of your mobile app is show the same ad 5 times and that user clicks the ad on the 5th time. In this example Ad Impressions are 5 where as Ad Clicks are 1. Google AdMob then pays you, the creator of the mobile app based on the terms you've setup with them, typically based on some combination of impressions and clicks.
Why is Impressions Per Daily Active User (IMPDAU) important?
For mobile app and mobile game creators IMPDAU is an important metric that is often used to analyze the total effectiveness of their monetization strategy. A higher IMPDAU means more opportunities to unobtrusively monetize your users from your mobile app or game. If Ad Networks like Google AdMob are paying you per ad impression, it's extremely important to have highly engaged DAUs because you'll be able to show them more ads before closing your app or game.
What is Average Revenue Per Daily Active User (ARPDAU)?
ARPDAU is related to IMPDAU but is looked at in terms of dollars vs. impressions. ARPDAU accounts for all your monetization strategies (Ad rev, in-app purchases, subscriptions, etc.) and is a KPI used to measure how well all your monetization strategies are working on a daily basis. Essentially ARPDAU tells you how much money your active users are generating by using your mobile app or game every single day.