ARFU: New Measure for Online Services?
+8* KoreaPublished April 2, 2007 at 10:54 pm Comments OffThis advertising point is very important and takes us back to the fundamental difference between MySpace and Cyworld:
- If your revenues come from advertising, you are in the eyeball business and your clients are advertisers
- If your revenues come from users themselves, you are in a service business and your clients are your users.
We are now tempted to introduce a new metric to make clear this fundamental difference: we used to talk about Average Revenue Per User (ARPU), and would like now to introduce Average Revenue From User (ARFU).
- MySpace has: ARPU = US$ 2 ; ARFU = 0 US$
- Cyworld has: ARPU = US$ 0.5 ; ARFU = US$ 6.5
Please keep in mind those figures (rough estimates) are not corrected with Purchasing Power Parity – which means the revenues from Cyworld are comparatively even higher!
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