Tax Season 2016Insights for digital marketers

In this world nothing can be said to be certain, except death and taxes.—Benjamin Franklin

Tax services is a $10.3-billion industry, projecting an averageannual growth rate of 2.4%We want to help you take a larger slice of the pie.

SOURCE: BISWorld Industry Report 54121d, Tax Preparation Services in the US, Gavan Blau, February 2016.

Financial services digital ad spending will grow to more than $9.4 billion in 2017Expect competition to increase with ad spending.

SOURCE: eMarketer, The US Financial Services Industry 2016: Digital Ad Spending Forecast and Trends, May 12, 2016.

US Financial Services Industry Digital Ad Spending (2015–2020; $Billions)

People need tax services now more than ever to manage their growing lifeBe there when they need you to guide them through the complexity.

Family • Marrying or divorcing• Having or adopting kids• Paying for

college tuition• Taking on parents as

dependents

Professional• Changing jobs• Becoming an

entrepreneur• Retiring• Buying your own health

insurance

Finance• Investing• Renting real estate• Moving/downsizing

The modern and legal definition of family is transformingBe there when their exemptions change.

SOURCE: 1. Microsoft internal data, Jan 1–Apr 22, 2016.2. comScore Plan Metrix, US, March 2016, custom measure created using comScore indices and duplication. March was used to reflect the month before tax filings are due.

15%YoY growth in tax season searches related to families1

Top Family Related Tax Terms1

Earned Income Credit1098 t, 1098 eChild Tax CreditAmerican Opportunity CreditForms 8863, 8917, 8332, 2441,

8812W4 calculator Lifetime Learning Credit___ credit table, ___ credit calculator

2.6MBing Network users got married in the last 6 months2

3MBing Network users are planning to get married in the next 6 months2

905KBing Network users adopted a child in the last 12 months2

5.7MBing Network users are "very likely" to have a baby in the next 12 months2

Family • Marrying or divorcing• Having or adopting kids• Paying for

college tuition• Taking on parents as

dependents

Nine-to-five is getting a faceliftBe there when they become their own boss.

SOURCE: 1. Microsoft internal data, Jan 1–Apr 22, 2016.2. comScore Plan Metrix, US, March 2016, custom measure created using comScore indices and duplication. March was used to reflect the month before tax filings are due.

2.5MBing Network users are planning to retire in the next 12 months2

9.9MBing Network users are planning to start their own business in the next 12 months2

17.9MBing Network users are planning to change jobs/careers in the next 12 months2

Professional• Changing jobs• Becoming an

entrepreneur• Retiring• Buying your own health

insurance

13%YoY growth in tax season searches related to work1

Top Professional Related Tax Terms1

Form 1099, 1099 r, 1099 g, 1099 saIRS mileage rate/reimbursementSchedule C, SERMD (required minimum distribution) calculatorForm 8889, 2106, 8962Self employment taxMedicare tax rate

Consumers are banking on returnsBe there when they need a trusted advisor.

SOURCE:1. Microsoft internal data, Jan 1–Apr 22, 2016.2. comScore Plan Metrix, US, March 2016, custom measure created using comScore indices and duplication. March was used to reflect the month before tax filings are due.3. comScore Plan Metrix, US, June 2016, custom measure created using comScore indices and duplication.

11.3MBing Network users are "somewhat likely" to purchase a new residence in the next 6 months2

6.4MBing Network users are "very likely" to purchase a new residence in the next 6 months2

3.4MBing Network users personally own a second home mortgage3

Finance• Investing• Renting real estate• Moving/downsizing

15%YoY growth in tax season searches related to finances1

Top Finance Related Tax Terms1

Capital gains tax rate, capital gains tax

Schedule B, D, EForms 8949, 1065, 5498, 5329,

8880Forms 1099 c, 1099 s Inheritance tax, estate taxSEP IRAAlternative minimum taxGift tax

Bing Network helps you be there for your customers and their life momentsThe audience you want to reachThe data to make smart decisionsThe tools to achieve more with confidence

The audience you want to reach

The Bing Network audience is primed for tax seasonWith the Bing Network, you’ll get access to half the tax paid clicks and a pool of educated, affluent taxpayers.

SOURCE: 1. comScore qSearch (custom), US, March 2016; industry categories based on comScore classifications.2. comScore Plan Metrix, US, January 2016, custom measure created using comScore indices and duplication.

50% of taxes paid clicks1

4.7MTaxes searchers not reached on Google1

12M Total tax searches1

5.2M Total tax searchers1

Bing Network financial services audience2

58%Ages 25–54 years old 51%

Married or living with a domestic partner

55%College degree or higher

Household income of $75K or more

53%

They’re performing more tax related searchesTax season related search volume grew 11% YoY on the Bing Network.1

SOURCE: 1. Microsoft internal data, Jan 1–Apr 22, 2015; Jan 1–Apr 22, 2016. Valleys occur on weekends. 2. Data analysis on IRS Weekly Filing Season Statistics, May 15, 2015 and May 13, 2016.3. IBISWorld Business Environment Report, National unemployment rate, June 2016.

1.5%Increase in IRS filing volume from the 2014 to 2015 tax seasons2

With the national unemployment rate hovering around 5.0%, filing volumes— and dare we say searches—are expected to stay high through 2020.3

And clicking on more adsTax season clicks increased 10% YoY on the Bing Network.1

SOURCE: 1. Microsoft internal data, Jan 1–Apr 22, 2015; Jan 1–Apr 22, 2016.2. comScore Plan Metrix, US, March 2016, custom measure created using comScore indices and duplication. March was used to reflect the month before tax filings are due.

Compared with Google, the Bing Network audience is 18% more likely to have purchased tax software online in the last 6 months2

What are they searching for? Ten of the top 25 search terms led most of the growth.

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

Brand searches account for47% of paid clicks related to Tax Services

The data to make smart decisionsTop 10 approaches to get more ROI

“If I look at the quality of the traffic we get for the dollars we spend on Bing Ads, our ROI is fantastic.”- Alex Littlewood, CEO, Motoroso

2016 breakdown of e-filing between tax professionals and individuals1

Plan your campaigns for the whole filing period6 out of 10 e-filing taxpayers rely on tax professionals and software, especially after the first week of February.1

Approach 1

SOURCE: Data analysis on IRS Weekly Filing Season Statistics, 2016. Note: Numbers for February 5 include taxes filed from Jan 20 to Feb 5.

25.7M 98.1M e-filed returns

88% of 2015 individual tax returns were e-filed

TIPHave your campaigns ready before the new year. Use the first two weeks of January to optimize your campaigns before the individual filing period opens.

Tax Season Searches and Clicks, by Device

Budget primarily for PC/tablet traffic PC/tablet searches account for more than 90% of tax searches and clicks on the Bing Network.

Approach 2

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

TIPPlan for the two peaks. The first peak runs from mid-January through mid-February. The second peak runs the week before and the day of the filing deadline.TIPSave time and improve the performance of your campaigns with Bing Ads Editor – available for PC and Mac (new!) – an intuitive and simple desktop application that streamlines your search campaign management.

Focus your mobile campaigns on the first half of the filing periodMobile has a strong peak in early February, but doesn’t experience a last-minute peak in April.

Approach 3

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

TIPUse mobile bid boosters to get your ads in front of mobile searchers.

TIPWant more customers to download your app? Take advantage of App Extensions to promote downloads of your iOS, Android, and Windows apps for smartphones, tablets and PCs.

Plan your budget for periods of high CPCMake sure you have enough budget to cover your campaigns when CPC starts to rise in the second half of the filing season.

Approach 4

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

TIPSet up and apply Automated Rules to help you respond to bidding and CTR changes automatically. You can also set up rules to help you monitor and adjust your campaign spending. TIPDownload the Bing Ads App for Android and iOS devices to manage your campaigns on the go, wherever you are, whenever you need.

Don’t miss out on half the clicks—bid on your competitors’ brand termsPeople are more likely to click when searching for brand queries than for non-brand queries.

Approach 5

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

TIPCapture those clicks! Use Remarketing in Paid Search together with Universal Event Tracking (UET) to target your existing customers and searchers who have previously visited your website. With Remarketing in Paid Search, you can tailor your ads based on their actions and remind them about your offerings.

Bid on your own brand terms too and keep your competitors at bayIn a study of 50M impressions in the Financial Services vertical, Bing Ads found that brand term bidding yielded a 57% lift in incremental paid and organic clicks.

SOURCE: Bing Ads research study, January—March 2014. Study looked at the financial services industry and captured 50 millionimpressions. Note: Brand Ads are in Mainline Position 1. No brand ad in this case means organic only listing.

Approach 5 (continued)

Bid on the Mainline position whenever possibleMainline ads grab 98% of Tax Products & Services clicks. Mainline ads (especially Mainline 1 ads) are more efficient at a marginally higher cost.

SOURCE: Microsoft Internal data (O&O and Partner Network), Jan 2016 – March 2016, US only, All Devices.Vertical Categorization: based on internal Bing Ads account categorization.

Tax Products & Services

98% of clicks occur in the Mainline

74%

of clicks occur in the Mainline 1

44x higher CTR in the Mainline verses Side Bar

Approach 5 (continued)

Go beyond the brand nameFor the top 3 tax service providers, people often search for their websites, login pages, current (and free) editions, and tax calculators.

Approach 6

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

TIPUse Keyword Planner to help identify the most effective ad groups and keywords to boost your campaign performance. TIPGive prospective customers more reasons to click your ads with Callout and Review Extensions by highlighting specific features, special offers and positive reviews.

Seize the opportunity—the IRS doesn’t advertise, but you doIRS related terms drive non-brand search traffic. Bid on IRS related keywords to reach out to searchers looking for help.

Approach 7

SOURCE: 1. Microsoft internal data, Jan 1–Apr 22, 2016.2. Data analysis on IRS Weekly Filing Season Statistics, 2014, 2015, 2016.

TIPPay attention to the latest tax regulations to see what new forms, rules or schedules taxpayers will be searching for in the upcoming tax season.

348.9M Visits to IRS.gov during the 2015 tax season.2

Optimize your keywordsEarly-bird filers want to know their refund status, while later filers seek extensions. Throughout the season, taxpayers search for contact information.

Approach 8

SOURCE: Microsoft internal data, Jan 1–Apr 22, 2016.

Top Search Terms by CategoryRefundswhere my refundirs where my refundirs gov where my refundwww irs gov where my refundirs refundwhere my state refundwhere‘s my refundirs refund schedule xxxxh r block emerald cardfederal tax refund status

TIPEnable App Extensions to point searchers to your mobile app for checking refund status.Don’t offer refund services? Skip “refund” keywords and invest more in the services you provide.

Extensionsform 4868irs extensionfile extensionfile tax extensionfile extension tax xxxxtax extensionfile extension taxesirs extension form 4868irs extension form tax extension form

TIPUse Callout Extensions to highlight your fast and efficient services.Add extension-seekers to your Remarketing in Paid Search lists as they’ll likely be searching for tax services again in late summer.

Contact Informationirs phone numberturbotax phone numbercontact irsirs addressturbo tax phone numberwhere send federal tax returnirs numberwhere do I mail my federal tax returninternal revenue service phone numberirs contact number

TIPApply Call and Location Extensions to help searchers find you.

Don’t forget about business tax customersIndividual tax returns are due in April, but business taxes and payments are due throughout the year. Invest in business tax campaigns which have high clicks all year long.

Approach 9

SOURCE: 1. Microsoft internal data, Tax Products & Services sub-vertical, January 2015–Apr 2016.2. IRS, Tax Calendar for Business & Self-Employed, accessed June 29, 2016.

Key Business Tax Dates2

Sept 15 – Partnership and corporate filing extensions expireSept 15, Dec 15, Tax Day, June 15 – Quarterly corporation estimated tax payments due March 15 – Corporation and S corp income tax returns due Tax Day – Partnership income tax returns due

Take advantage of Business Taxes’ low CPC and high CTRBusiness Taxes are less competitive and offer lower CPCs and higher CTRs than Tax Preparation Services.

Approach 9 (continued)

SOURCE: Microsoft internal data, Tax Products & Services sub-vertical, January 2015–Apr 2016. Note: Tax Preparation CPC is lower than Business Taxes during Tax Season (Jan-Apr) due to the volume of brand clicks.

TIPBudget your business tax campaigns for the entire year. Pay attention to periods of high CTR.

Common Business Tax FormsForm 1120, 1120sForm 1065Schedule K-1Form 4562Form 7004Form 8825

Words that workAd copy analysis

Approach 10

Bing Ads can help you expand your connectionsWords that Work | How to read a heatmap

Approach 10

% Off Call to Action

CTA: File

Features Free

Information/ Services

IRS Online Price/Pricing Returns Softwar

eSuperlatives Tax

Tax Deductions

Turbo Tax

% OffCall To ActionCTA: FileDKIFeaturesFreeInfo/ServicesIRSMedicalOnlinePrice/PricingReturnsSoftwareSuperlativesTaxTax DeductionTurbotax

Our study results show that an ad with “Free” in the title and Information/Services related terms in the description presents high ad quality performance.

Ad T

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% Off Call to Action

CTA: File

Features Free

Information/ Services

IRS Online Price/Pricing Returns Softwar

eSuperlatives Tax

Tax Deductions

Turbo Tax

% OffCall To ActionCTA: FileDKIFeaturesFreeInfo/ServicesIRSMedicalOnlinePrice/PricingReturnsSoftwareSuperlativesTaxTax DeductionTurbotax

Words that Work | Tax Season – February PeakApproach 10 (Continued) Grea

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dBad Insufficient data

SOURCE: Microsoft internal data. Total impressions gathered = 77 million, Total ad analyzed = 71k, Analysis period = 17 Jan 2016 – 13 Feb 2016.

Ad T

itle

Ad Description

Words that Work | Tax Season – April PeakApproach 10 (Continued)

SOURCE: Microsoft internal data. Total impressions gathered = 32 million, Total ad analyzed = 65k, Analysis period = 1 April 2016 – 18 April 2016.

% Off Call to Action

CTA: File Edition Featur

es FreeInformation/ Services

IRS Nothing Online Param

InsertPrice/Pricing

Returns

Software

Superlatives Tax Turbo

Tax

% OffCall To ActionCTA: FileDKIEditionEmerald CardFeaturesFreeInfo/ServicesIRSOfficialOnlineReturnsSoftwareSuperlativesTaxTurbotax

           

     

 

       

 

                             

         

   

       

     

   

       

       

                 

   

   

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The tools to achieve more with confidence

Leverage the Bing Ads platformUtilize tools, features, and extensions to reach your target audience and grow your business.

ToolsBing Ads Editor for PC and MacBing Ads App for Android and iOS devicesBing Ads IntelligenceKeyword PlannerAudience insights

Features & ProductsUniversal Event Tracking (UET)Remarketing in Paid Search Bing Shopping Campaigns Location targetingDevice targeting

ExtensionsApp ExtensionsCall ExtensionsLocation ExtensionsCallout ExtensionsReview ExtensionsSitelink and Enhanced Sitelink Extensions

Increase engagement by adopting multiple Ad ExtensionsMore is better. Ads with two extensions have a 5x higher CTR than text ads.

SOURCE: Microsoft Internal data, Oct 2015 – Dec 2015, US only, All Devices.Vertical Categorization: based on internal Bing Ads account categorization.

Tax Products & Services

Realize your Tax Season goals with the Bing Network

Key takeaways for the 2016 tax seasonThe Bing Network is here to help you achieve more with confidence and realize your goals.

SOURCE: 1. comScore qSearch (custom), US, March 2016; industry categories based on comScore classifications.2. comScore Plan Metrix, US, January 2016, custom measure created using comScore indices and duplication.

1 Connect with the Bing Network audience With the Bing Network, get access to half the tax paid clicks and a pool of educated, affluent taxpayers.1,2

2 Take advantage of Bing Network’s growing tax volume and clicksInvest more in Bing Ads to expand your connections.

3 Make smart decisions with dataUse our 10 approaches to help you get a better ROI in the upcoming tax season.

4 Leverage the Bing Ads platform to achieve more with confidenceUtilize tools, extensions and features to reach your target audience and grow your business.

It’s quick and easy to import your Google AdWords campaigns directly into Bing Ads with just a few clicks.Learn how to import your campaigns

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