With the holiday season launch of its Mini Jambox, consumer technology leader Jawbone not only faced competition from a dozen competitive portable audio speakers, but had to credibly differentiate the higher priced new product from the original Jambox. As cost-per-click (CPC) auction prices spiked, driven up by seasonal demand, Jawbone confronted the double squeeze of higher campaign costs and competitive product prices.
Resolution Media devised a strategic test to determine the impact of third-party reviews on click-thru rate (CTR) and customers’ perception of product quality and value. The strategy was built on the availability of Google Review Extensions, which allow advertisers to include third-party reviews below the main ad text.
- Tested both brand and non-brand ads using excerpts from Venture Beat review.
- Recommendation in non-brand ad emphasized overall quality of the sound for a portable speaker – “impressive for something this portable.”
- Recommendation in brand ad established the improvement of the Mini Jambox over the original – “significantly slimmer…sounds just as good.”
- Review extensions increased campaign performance.
- Including the review extensions yielded larger ad sizes, increased credibility and additional text for product differentiation.
- Brand ads with review extensions performed better across the board, with a 6.8 percent CTR increase, 55 percent conversion rate increase, 10 percent lower CPC, and 41 percent lower CPA.
- Non-brand ads with reviews had 107 percent CTR increase, and 6 percent higher conversion rate, but slightly increased CPC, which correspondingly drove up CPA.
- More testing of bids may help lower CPA in the long run.
- Identified best practice: Test different reviews to determine impact on campaign performance.