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Assuming fake users don't add to revenue (by not clicking on ads, for example), shouldn't fake users depress ARPU? The numerator remains constant while the deno
by pinky1417 9y ago
Assuming fake users don't add to revenue (by not clicking on ads, for example), shouldn't fake users depress ARPU? The numerator remains constant while the denominator increases.
- eanzenberg 9y agoLet's say they are making $100M revenue on 100M users, so ARPU $1 / user. But half of those users are fake. Their actual ARPU is $2 / user but to the outside world it doesn't matter, their $100M revenue hasn't changed.