Since every company relies on its own methodology to calculate MAU, it can be challenging to use the metric for a meaningful comparison. The lack of industry standards is one of the key problems with using the MAU metric. Many companies adjust their MAU figures for such items to prevent the artificial inflation of the metric. In addition, companies must carefully monitor the number of duplicate, false, and spam accounts that can substantially distort MAU data. The recognition of unique users is executed using an identifier such as a username or email. Generally, the number of monthly active users is calculated using a company’s internal data. MAU: A Twitter user who logged in or was otherwise authenticated and accessed Twitter through the website, mobile website, desktop or mobile applications, SMS, or registered third-party applications or websites in the 30-day period ending on the date of measurement. On the other hand, Twitter’s definition of the metric is slightly different: MAU: A registered active user who logged in and visited Facebook through the website, mobile app, or Messenger application in the last 30 days as of the date of measurement. Facebook’s definition of monthly active users is the following: Thus, each company uses its own methodologies to identify the monthly active users. Despite the fact that the number of monthly active users is calculated and reported by almost all Internet businesses, there is still no industry standard regarding the definition of active users.įor example, some companies define active users as those who just visited their website, while other companies include only registered users in their MAU figures. The identification of a number of monthly active users is not as straightforward as it may seem.
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How to Calculate the Number of Monthly Active Users? Other companies have different requirements that one must meet before qualifying to be an active user. One of such definitions is that site visitors qualify to be a user, provided they have login credentials. 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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