Media, luxury and education
DAU/MAU ratio
Daily active users divided by monthly active users: how often people come back.
Facts checked against sources onWhat does DAU/MAU ratio mean?
DAU is the number of unique users active on a given day, and MAU the number active at least once in a month. The DAU/MAU ratio, often called stickiness, shows how many days a month the typical user returns. Example: an app with 3 million DAU and 10 million MAU has a ratio of 30 percent, so the average monthly user is active about 9 days a month. Messaging and social apps tend to score high and travel apps low, so compare with similar products. Companies define "active" differently, which makes comparisons between companies tricky.
Where does it come up in case interview prep?
- Product managementLesson in The same acumen in other roles
- How media, streaming, and gaming make moneyLesson in Media, streaming, gaming, and advertising
- How internet platforms, marketplaces, and digital ads workLesson in Internet platforms, marketplaces, and digital advertising
- How video games and betting make moneyLesson in Video games and betting: publishers, platforms, sportsbooks and lotteries
Related terms
- ARPPU (average revenue per paying user)Revenue divided by only the users who pay, not all users.
- Payer conversionThe share of users who pay for something in a period.
- Churn and retentionThe share of customers who leave in a period, and the share who stay.
- Network effectsA product becomes more valuable as more people use it.
- SVOD and AVODStreaming paid for by subscription (SVOD) versus paid for by advertising (AVOD).
- Fill rate (advertising)The share of available ad slots that are actually sold and shown.
- Content amortizationSpreading the cost of films and shows as an expense over the years they are expected to earn.
- Directly operated store (DOS)A store the brand owns and runs itself, rather than selling through another retailer.
Learn it in context
See DAU/MAU ratio at work in a lesson from The same acumen in other roles, with checks as you go.
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