How TaxAct and H&R Block leverage the tax season to optimize their advertising strategy.
Tax preparation and filing can pose quite the challenge, and having a software that helps you accurately determine and manage your tax liabilities can be a game-changer. According to Exponential, more and more people in the U.S. prefer online tax filing or using a tax filing software, instead of relying on retail and walk-in tax services. The 2018 NSBA Tax Survey found that one in three businesses spend more than 40 hours and $10,000 every year doing their taxes. Given that 67% of small business owners consider “paperwork to be one of the biggest tax concerns,” it comes as no surprise that most of them are migrating to third-party platforms to file their returns. Today, the market is flooded with companies offering digital services, and software for individuals and businesses looking for an economical and timely way to file their tax returns. TaxAct and H&R Block, for example, are already big names in the industry. In this post, we’d learn more about how these two companies spend their advertising money and get a detailed understanding of their frequently used campaigns, creatives, publishers, landing pages and more. Let’s get started: TaxAct Founded in 1998, TaxAct offers a software package to professional partners, individuals, and companies, allowing them to file their state and federal tax return easily with a helpful, step-by-step guide. In 2000, the company launched a cloud-based version of TaxAct before selling two-thirds of the ownership stakes (worth $89 million) to TA Associates, a Boston-based private equity firm, in 2004. Finally, in 2012, TaxAct was sold to Bluecora for $287 million. The company is now pursuing new growth opportunities by investing in small business and mobile products. Let’s take a closer look at how paid advertising is helping them achieve their targets: Ad Spend and Ad Networks In the last 6 months, TaxAct has spent a whopping $5M on ads, with the majority being dedicated to Google ($2.4M) and $1.4M going towards Direct Buys. In the United States, the Federal individual income tax returns are filed with the Internal Revenue Service (IRS) every year by April 15. As a result, companies like TaxAct tend to double down on advertising between January and April, in order to attract customers looking to file their returns without having to jump through multiple hoops. TaxAct’s ad spend has been $4.2M in the last three months alone (Jan: $1.3M, Feb: $1.8M, March: $1.1M) which means, they’re capitalizing on the current tax season to get as many conversions as possible. TaxAct is also one of the many companies that have added programmatic ad buying to their overall marketing strategy. Side note: Programmatic ads lead to better targeting of potential customers and 508% more conversions than pay per click (PPC). As a result, advertisers in the U.S. are expected to spend almost $69 billion in programmatic display advertising.Sixty-eight percent of TaxAct’s ad spend goes towards programmatic ads, and the remaining is dedicated to video ads (5%) and direct ads (27%). Publishers Most of TaxAct’s ad spend in the last year has gone to the same publishers—CBS Local, Merriam-Webster, YouTube, Wikia, and SpanishDict. Additionally, they also advertise on Reddit, AZLyrics, Urban Dictionary, ESPN, Yahoo, and Life Hacker, amongst other platforms. On CBS Local, where they’ve spent $287.7K in the last six months, their advertisements primarily appear on location-based homepages; for example, Detroit, New York, Boston, and Los Angeles. With Merriam-Webster, TaxAct adopts a more contextual targeting strategy and spends a significant amount to advertise on the ‘legal’ section of the dictionary that includes several terms related to taxes. Someone looking up the definition of ‘tax credit’—especially during the tax season—will be more interested to know what TaxAct has to offer. Similarly, on SpanishDict, in addition to advertising on the homepage, TaxAct also ensures that their ads appear on the ‘translate’ section of the website for commonly searched terms like, ‘Happy Birthday’ and ‘I miss you’ which most likely get a higher traffic than the rest of the pages on the platform. Creatives TaxAct’s ads prominently feature images (94%) and videos (4%). The copy is short, crisp and conveys the exact USPs of Taxact. For example, by using attention-grabbing terms and phrases like, ‘$0 filing’ and ‘Your biggest refund guaranteed’, the company is putting themselves in their customer’s shoes and speaking directly to the questions, reservations, and concerns they have about online tax preparation. ...