Ratings vs Review Text, Can G Ad automation replace agencies?, Will Musk torpedo Twitter ads?

The Near Memo

Apr 30 2022 • 26 mins

It is generally assumed that the ratings aspect of reviews is what drives conversions and thus they are typically emphasized. However it would appear that in many cases that the content of the “top 3” most visible reviews actually influence purchase decisions more than the star ratings. In a clever study design these researchers were able to disentangle the relative importance of ratings versus the text in the top 3 reviews.

Google announced upgrades to their Performance Max product and that it will provide a one-click upgrade (and replacement) path for both previous Smart Campaigns and Local Campaigns. Google Ads have long been moving towards an automated model to maximize effectiveness and away from the need for curated ad management. This is another step on that path and seems to make product ads almost as easy as their hands-off LSA ads. There is a need for rigorous A/B testing by enterprises to determine the value of each approach.

Even though Twitter is making user gains, it is likely that advertising on Twitter will be negatively affected by the types of changes that Elon Musk is suggesting. Obviously depending on specific product changes that Musk might make, it is an open question whether data licensing or advertising will be the primary path to profits.

The Near Memo is a weekly conversation about Search, Social, and Commerce: What happened, why it matters, and the implications for local businesses and national brands.
Near Memo Ep 62

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