KPISales

Ad Revenue per User

Average advertising revenue generated per monthly active user on ad-supported tiers

What is Ad Revenue per User?

Ad revenue per user is the advertising income earned for each monthly active user on an ad-supported tier. It shows how well an audience is monetised through advertising.

Media businesses use it to compare the value of ad-supported users with subscribers and to judge audience growth.

How this KPI is measured

Function
Sales
Sub-function
Ad Revenue
Industry
Media & Entertainment
Type
Lagging
Impact
Revenue
Unit
$/user
Measurement frequency
Monthly / Quarterly
Formula
Total advertising revenue / Average MAUs on ad-supported tier

How to calculate it

Divide total advertising revenue by the average monthly active users (MAUs) on the ad-supported tier.

For example, if advertising earned 900,000 in a month from an average of 300,000 monthly active users, the figure is 3 per user.

Use the same period and definition of an active user each time, and segment by platform and region.

Where it is used

  • Valuing the audience

    Estimate what each user is worth to advertisers.

  • Comparing tiers

    Weigh ad-supported use against subscription.

  • Setting growth targets

    Plan revenue from audience growth.

How to improve it

Tips and common mistakes

  • Do not raise ad load so far that users leave.
  • Compare by platform, since mobile and web differ.
  • Read alongside retention.

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