![]() ![]() Accounting standards do not recognize MAU because it lacks universal standards for defining key terms such as “active” and “user.”īased on this controversy, companies define the terms in different ways. It excludes any component that considers the quality, intensity, or depth of the users’ experience. Since it is a quantitative variable, MAU only tabulates the traffic number. At one end of the spectrum, supporters of MAU argue that it can only provide an accurate picture of active users when paired with other qualifying metrics. Critics of MAU use such an argument to support their claims that MAU is a biased KPI compared to its competitors. The use of dissimilar parameters when calculating MAU varies by company. ![]() Thus, MAU comes in handy to provide a rough overview of a business’ general health and acts as the basis upon which to calculate other key metrics. Therefore, a high number of users is an indication that a product enjoys good customer engagement and retention over a period of time.īy measuring the number of active users, a company is better positioned to assess the efficacy of its marketing strategies and customer experience. A high number of active users indicate that people are frequently interacting with a product. Importance of Active Usersįrom a business standpoint, it is useful to know how users interact with the company’s website. For example, social network titans such as Facebook and Twitter devote a substantial amount of time to discuss the trends of monthly active users (MAU) in their quarterly reports. Commonly, a considerable change in MAU can affect the stock price of a company in the social media industry.Īlthough MAU is a measure that is not recognized by current accounting standards, it is still reported by public companies in their financial reports. Furthermore, MAU delivers some insights into the company’s ability to attract new customers and retain the existing ones. The metric provides a quick overview of the company’s user growth. Investors generally close look at the number of monthly active users of a company. The metric is primarily used by internet businesses, including social networking, online gaming, and mobile app companies. Essentially, MAU is a key performance indicator (KPI) that measures online user engagement. Monthly active users (MAU) is a term that refers to the number of unique customers who interacted with a product or service of a company within a month. Updated DecemWhat are Monthly Active Users (MAU)? ![]()
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