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Satellite measurements (retrievals) of surface soil moisture are subject to errors and cannot provide complete space‐time coverage. Data assimilation systems merge available retrievals with information from land surface models and antecedent meteorological data, information that is spatio‐temporally complete but likewise uncertain. For the design of new satellite missions it is critical to understand just how uncertain retrievals can be and still be useful. Here, we present a synthetic data assimilation experiment that determines the contribution of retrievals to the skill of land assimilation products (soil moisture and evapotranspiration) as a function of retrieval and land model skill. As expected, the skill of the assimilation products increases with the skill of the model and that of the retrievals. The skill of the soil moisture assimilation products always exceeds that of the model acting alone; even retrievals of low quality contribute information to the assimilation product, particularly if model skill is modest.

Quality of precipitation products from the Integrated Multi‐satellitE Retrievals for Global Precipitation Measurement mission (IMERG) was evaluated over the Lower Colorado River Basin of Texas. Observations of several rainfall events of a wide range of magnitudes during May 2015 by a very dense network of 241 rain gauges over the basin were used as a reference. The impact of temporal and spatial downscaling of different satellite products (near/post‐real‐time) on their accuracy was studied. Generally, all IMERG products perform better when the temporal and spatial resolutions are downscaled. The Final product shows relatively better performance compared to the near‐real‐time products in terms of basic performance measures; however, regarding rainfall detection, all products show nearly similar performance. When considering rainfall detection, IMERG adequately captures the precipitation events; however, in terms of spatial patterns and accuracy, more improvements are needed. IMERG products analysis results may help developers gain insight into the regional performance of the product, improve the product algorithms, and provide information to end users on the products’ suitability for potential hydrometeorological applications. Overall, the IMERG products, even the uncalibrated product at its finest resolution, showed reasonable performance indicating their great potential for applications such as water resources management, prevention of natural disasters, and flood forecasting.