ARPU (Average Revenue Per User)

A revenue metric calculated by dividing total revenue by all active users in a given period. Shows how much the average player contributes financially, including both payers and non-payers.

ARPPU (Average Revenue Per Paying User)

Total IAP revenue divided only by users who made at least one purchase. Useful for understanding payer spending behavior separate from the general population.

Bundle

A grouped collection of items, currency, or boosts sold together—usually at a perceived discount compared to buying items individually. Commonly used to increase purchase value and create upsell opportunities.

Conversion

The moment a user completes a key monetization action, most often their first purchase. Conversion rate indicates how effectively the game turns players into payers.

Cohort

A group of users who share a common trait such as install date, country, acquisition source, or device. Cohort analysis tracks how this group behaves over time (e.g., retention, revenue, LTV).

Demand (monetization)

Player appetite or motivation to spend, reflected through engagement with offers, purchase frequency, conversion rate, and willingness to pay. High demand typically signals strong perceived value in the game’s economy.

IAP (In-App Purchase)

Any in-game product purchasable with real money. Common examples include currency packs, bundles, cosmetics, or special offers.

LTV (Lifetime Value)

Total revenue a user or cohort generates over their entire lifecycle. “LTV” often refers to cumulative revenue to date (e.g., US cohort has $2.3 LTV). When specified as “Day 30 LTV,” it refers to revenue earned within the first 30 days.

MVP (Minimum Viable Product)

The simplest version of a product or feature that is functional and ready for basic use. In gaming, this might mean a minimal ad setup, foundational analytics, or a first playable build.

Offer

Any purchasable promotion shown to users, often time-limited, personalized, or triggered by behavior. Offers aim to increase conversion and ultimately LTV.

Pack

A static set of items or currency sold at a fixed price in the main store. Packs typically change infrequently and form the backbone of the game’s permanent monetization. Sometimes used interchangeably with “Bundle” or “Offer”.

Supply (monetization)

The total amount of purchasable content, currency, and rewards the game provides. Balancing supply with demand ensures players feel they have meaningful options without flooding the economy.

WTP (Willingness to Pay)

The perceived price level players are ready to spend for a given item or experience. Often inferred from purchase behavior, offer response, and pricing tests.