Active users
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Active users

Active users is a software performance metric that is commonly used to measure the level of engagement for a particular software product or object, by quantifying the number of active interactions from users or visitors within a relevant range of time (daily, weekly and monthly).

The metric has many uses in software management such as in social networking services, online games, or mobile apps, in web analytics such as in web apps, in commerce such as in online banking and in academia, such as in user behavior analytics and predictive analytics. Although having extensive uses in digital behavioural learning, prediction and reporting, it also has impacts on the privacy and security, and ethical factors should be considered thoroughly. It measures how many users visit or interact with the product or service over a given interval or period. However, there is no standard definition of this term, so comparison of the reporting between different providers of this metric is problematic. Also, most providers have the interest to show this number as high as possible, therefore defining even the most minimal interaction as "active". Still the number is a relevant metric to evaluate development of user interaction of a given provider.

This metric is commonly assessed per month as monthly active users (MAU), per week as weekly active users (WAU), per day as daily active users (DAU) and peak concurrent users (PCU).01340022105

Active users on any time scale offers a rough overview of the amount of returning customers a product maintains, and comparing the changes in this number can be used to predict growth or decline in consumer numbers. In a commercial context, the success of a social-networking-site is generally associated with a growing network of active users (greater volume of site visits), social relationships amongst those users and generated contents. Active Users can be used as a key performance indicator (KPI), managing and predicting future success, in measuring the growth and current volume of users visiting and consuming the site. The ratio of DAU and MAU offers a rudimentary method to estimate customer engagement and retention rate over time. A higher ratio represents a larger retention probability, which often indicates success of a product. Ratios of 0.15 and above are believed to be a tipping point for growth while sustained ratios of 0.2 and above mark lasting success.

Chen, Lu, Chau, and Gupta (2014) argues that greater numbers of users (early adopters) will lead to greater user-generated content, such as posts of photos and videos, that "promotes and propagates" social media acceptance, contributing to social-networking-site growth. The growth of social media use, characterised as increase of active users in a pre-determined timeframe, may increase an individual's social presence. Social presence can be defined as the degree to which a social-networking communications medium allows an individual to feel present with others.

Moon and Kim's (2001) research results found that individual's enjoyment of web systems have positive impacts on their perceptions on the system, and thus would form "high behaviour intention to use it". Munnukka (2007) have found strong correlations between positive previous experience of related types of communications and adoption of new mobile site communication services. However, there are also cases where active users and revenue seemed to have a negative correlation. For instance, Snap Inc.'s gains in daily active users (DAU) have stabilised or decreased during the COVID-19 pandemic, revenue still exceeded estimates, with strong similar strong trends in the current period.

Greater number active users boost the number of visits on particular sites. With more traffic, more advertisers will be attracted, contributing to revenue generation. In 2014, 88% of corporation's purpose of social media usage is advertising. Active Users increase allows social-networking sites to build and follow more customer profiles, that is based on customer's needs and consumption patterns. Active user data can be used to determine high traffic periods and create behavior models of users to be used for targeted advertising. The increase of customer profiles, due to increase of active users, ensures a more relevant personalised and customised advertisements. Bleier and Eisenbeiss (2015) found that more personalised and relevant advertisements increase "view-through responses" and strengthen the effectiveness of "the advertised banner" significantly. DeZoysa (2002) found that consumers are more likely to open and responsive on personalised advertisements that are relevant to them.

The Financial Accounting Standard Board defines that objective of financial reporting is provide relevant and material financial information to financial statement users to allow for decision making and ensure an efficient economic |resource allocation. All reporting entities, primarily publicly listed companies and large private companies are required by law to adhere to disclosure and accounting standards requirements. For example, in Australia, companies are required to comply with accounting standards set by the Australian Accounting Standards Board, which is part of the Corporations Act 2001. In social media company's context, there is also reporting of non-financial information, such as the number of users (active users). Examples may include:

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