MICROSOFT ADVERTISING

COVID-19 impact on Financial Services: Taxes

Microsoft Advertising. Intelligent connections.

What’s going on?

The federal tax deadline was pushed to July 15:• Only applies to income tax and not employment taxes• The IRS is still urging those who expect a return to file

as soon as possible• Extensions are still due October 15

State filing is a mixed bag:• Most states have fallen suit in extending deadlines, but

others have not; the complete list is here

This will affect filing behavior:• 2019 tax returns will be considered first; in absence,

2018 returns will be considered• People will take the opportunity to delay or file taxes

depending on which year they earned more

Key takeawaysWhile search volume has trended down during initial disruption, traffic growth is expected as volatility levels decline and deadlines approach• The first round of payment extensions & state extensions was an exception. This could be due to the

unprecedented nature and confusion around a filing vs. payment extension.

Recent stimulus checks helped revive the tax conversation• The steepest year-over-year (YoY) search results page view (SRPVs) change during this time was after

the filing extension was announced, however, stimulus check announcements sharply increased the need to understand tax implications better

People may still file now, despite the deadline extension• 80% of Americans receive a refund. A desperate need of cash flow in the U.S. economy can encourage

people to file well before the July 15 deadline.• Stimulus check qualification relies on tax returns or social security. Those who did not file in

2018 or 2019 because of not meeting income thresholds are encouraged to do so.

It is an opportune time to bid on brand searches• As brand click-through rates (CTRs) increase post-extension and costs per click (CPCs) are at a

historical low, ad density is decreasing as brands conserve for a longer haul• This is an opportunity to have a greater presence in the market

Year-to-date (YTD) weekly market trends

Bing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices s

Brand

Non-brand

SRPVs are down YoY with the first peak being slightly softer than last year

Bing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

Density decreased in brand searches, but the Tax vertical is still competitive

Brand

Non-brandDensity

Bing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

Brand

Non-brand

Impressions also took a hit, mostly stemming from a decrease in brand density

A closer look at COVID-19:daily March lookback

Non-brand SRPV traffic waned at the beginning of the national emergency but picked back up when official tax dates were announced

2019 dates adjusted to match weekend cadenceBing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

Bing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

Important announcement SRPV Δ density Δ CPC Δ CTR Δ

Initial intent to defer taxes (3/11-3/12) -7% 16% -12% -10%

National emergency declared (3/13-3/16) -4% 11% -15% -8%

Announcements of state filing extensions & fed tax payment extensions (3/17-3/19)

5% 13% -12% -15%

Official federal tax filing extension (3/20-3/24) -12% 20% -4% -11%

Stimulus checks announced (3/25-3/28) 23% 28% 2% 3%

While filing extensions caused a drop in non-brand traffic, stimulus checks reignited interest

lessening the cost burden on brands

spur non-brand traffic

2019 dates adjusted to match weekend cadenceBing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

Branded SRPV traffic took a hit as extensions were announced

Bing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

Important announcement SRPV Δ density Δ CPC Δ CTR Δ

Initial intent to defer taxes (3/11-3/12) -9% -22% -30% 13%

National emergency declared (3/13-3/16) -6% -24% -33% 21%

Announcements of state filing extensions & fed tax payment extensions (3/17-3/19)

1% -24% -32% 22%

Official federal tax filing extension (3/20-3/24) -17% -32% -23% 34%

Stimulus checks announced (3/25-3/28) 19% -28% 5% 32%

Brand traffic reactions were like non-brand, but with important differences

understanding the new laws (rather than looking to convert immediately)

Density for brand is also consistent with the year trend, however, brand saw an increased dip in density as competitors may have pulled back dollars for the extended tax period

Bing Ads Internal 1.1.18-3.28.2020, Top 200 Queries, Bing Ads Core, All Devices

refund dates for direct deposit2020 tax brackets

tax calculator 2020tax refund calculator 2020calculate your tax refundtax return refund dates

estimate your tax refunddirect deposit refund dates

2019 tax tablestax refund dates

irs refund schedulesestimate tax refundtax refund estimator

tax helpfree taxes

tax brackets 2019calculate your tax return

file taxes onlinetax refund schedule

refund direct deposit dates

irs.govirstax

taxeswww.irs.gov

irs formsfree tax filing

tax returnw2

internal revenue serviceirs refund status

tax refund calculatorfile taxes online

tax helpirs.gov forms

tax preparationirs where's my refundfree tax filing online

tax calculator2019 tax tables

Top keywords

Looking forwardPeople may still file now despite the extensions• 80% of Americans receive a refund. A desperate

need of cash flow in the U.S. economy can encourage people to file well before the July 15 deadline.

• Stimulus check qualification relies on tax returns or social security. Those who did not file in 2018 or 2019 because of not meeting income thresholds are encouraged to do so.

A smaller number of people may delay filing due to stimulus checks Those making more in 2019 than 2018 may delay

filing to qualify for checks

advertising.microsoft.com