Many Happy Returns

How to match your campaigns to tax season consumer behavior

Like it or not, tax season is here again, and all over the country people are filing their returns and keeping their fingers crossed. It’s not surprising that many folks are expecting a refund from Uncle Sam, but what they plan to do with that refund may get your attention.

Big spenders

While the majority of refund recipients plan to spend their new-found fortunes on paying down debt and shoring up savings, research* shows that about one in ten taxpayers will dedicate a portion of their refund to major purchases or a vacation.

That means that advertisers who offer “big-ticket” items (cars, plasma televisions, etc.) or vacations may want to consider creating campaigns targeted toward consumers who intend to use a portion of their refunds for luxury items.

Women typically account for more than 60 percent of the visitors to tax sites as the season begins in January and February. However, in the last six weeks leading up to the April 15 deadline, it’s men who make up almost 60 percent of tax site visitors. So, do you pitch your romantic getaway cruises or your extreme adventure packages? Depends on the calendar. (We’re not saying which of these would be better for which group. We’ve learned our lessons.)

…and penny pinchers

Not everyone wants to spend. Advertisers who offer debt management or consolidation services might consider creating campaigns that appeal to the large majority of people who plan to apply their tax refunds toward reducing debt.

The first week of February usually sees the biggest spikes in visits to accounting web sites, showing that that people have received their W-2s and are beginning to file online. A second spike usually appears in the second week of April, representing last-minute filers trying to beat the deadline. The bottom line here is that advertisers who specialize in tax services and merchandise will want to have their ads in place and prepared to meet the demand, and make sure those campaigns are fully funded and monitored throughout tax season.

— Noah Belson, Content Quality Analyst/Tax Man

*All research from: 2007 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch for National Retail Federation