Adlega Blog:
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ARPU (Average Revenue Per User): Meaning, Formula & Benchmarks
What is ARPU? Average Revenue Per User (ARPU) measures how much revenue a business generates from each user, including both paying and non-paying users. It’s a key metric for understanding business health and growth potential. Basic Formula and Example ARPU = Total Revenue ÷ Total Number of Users Simple Example: Monthly revenue: $10,000 Total users:…
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ARPPU: Average Revenue Per Paying User
What is ARPPU? ARPPU measures how much revenue you generate from each paying user. Unlike ARPU (Average Revenue Per User) , ARPPU only considers users who actually pay, giving a clearer picture of customer value. How to Calculate ARPPU Basic Formula ARPPU = Total Revenue ÷ Number of Paying Users Example Calculation A SaaS company…
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Concentration Risk
What is Concentration Risk? Concentration risk occurs when a business depends too heavily on a single factor: One major customer One key supplier One revenue stream One geographic location One product line Imagine putting all your eggs in one basket – that’s concentration risk in its simplest form. Let’s explore how this risk affects businesses…
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Compounded Monthly Growth Rate (CMGR)
What is CMGR? Compounded Monthly Growth Rate (CMGR) measures your consistent monthly growth rate, assuming growth compounds each month. It’s particularly useful for startups and SaaS companies to understand their true growth pace. Why CMGR Matters Shows consistent growth pace Better than simple averages ( see explanations further in the article ) Accounts for compounding…
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Outbound Marketing
What is Outbound Marketing? Simple Definition: Outbound marketing is when a company initiates contact with potential customers through advertising and promotional messages. It’s like reaching out to shake someone’s hand instead of waiting for them to approach you. Common Types of Outbound Marketing Traditional Media TV commercials Radio ads Print advertising Billboard advertising Direct Communication…
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Inbound Marketing
What is Inbound Marketing? Simple Definition: Inbound marketing is a strategy that attracts customers by creating valuable content and experiences tailored to them. Instead of interrupting people with your message, you help them find you when they need you. Inbound vs. Outbound Marketing Outbound Marketing (Traditional) TV commercials Cold calling Print ads Billboard advertising Unsolicited…
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TAM, SAM, and SOM: Meaning, Formulas & How to Calculate
What Are TAM, SAM, and SOM? Think of these metrics as three concentric circles, each getting smaller and more focused: TAM (Total Addressable Market) The entire possible market for your product Everyone who could theoretically use your product Your “dream big” number SAM (Serviceable Addressable Market) The portion of TAM you can actually reach People…
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Revenue vs Income vs Profit: The Key Differences
Revenue, Income, and Profit: Understanding the Differences Confused about financial terms? Let’s break down the differences between revenue, income, and profit using simple examples and clear explanations. Quick Overview Think of a lemonade stand to understand these terms: Revenue : All the money you collect from selling lemonade Income: Money you receive from various sources…
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SEO
What is SEO and Why Does it Matter? Search Engine Optimization (SEO) is like making your website easier to find in the vast ocean of the internet. When someone searches for something on Google, the search engine looks through millions of websites to find the most relevant and helpful ones. Think of it like organizing…
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Market Penetration: Definition, Formula & Strategies
Market penetration is the percentage of a target market a company or product has captured. The formula is Current Customers ÷ Total Target Market × 100. It shows how much of your potential market you've actually reached — and how much room is left.…
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DAU
What is DAU? Simple Definition: Daily Active Users (DAU) is the number of unique users who engage with a product or service during a 24-hour period. Key Points: Counts each user only once per day Usually measured from midnight to midnight Requires clear definition of “active” Why DAU Matters Immediate Feedback Shows daily product health…
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DAU/MAU Ratio: Formula, Benchmarks & How to Improve It
What is the DAU/MAU Ratio? Simple Definition: The DAU/MAU ratio compares your Daily Active Users (DAU) to your Monthly Active Users (MAU). It shows what percentage of your monthly users engage with your product daily. Formula: DAU/MAU Ratio = Daily Active Users ÷ Monthly Active Users Example: If your app has: 1,000 daily active users…