15% of taxpayers are lucky enough to get a refund, and they’re looking for ways to spend it
The majority of search traffic around tax time is focused on finding tax services, learning tax rules, and gathering information on how to file taxes. That said, just because the tax deadline hits today doesn’t mean advertisers shouldstop targeting tax-savvy consumers---especially retail advertisers, because taxpayers lucky enough to get a refund are very likely looking for ways to spend it.
A recent CBS MoneyWatch article makes the point with some interesting stats. According to the IRS, the average tax return last year was $2,899. While the majority of taxpayers plan to use their returns to pay down debt or put money into savings, 15% say they're looking spend it on vacations or big-ticket retail items.
A search for “how to spend my refund” turns up stacks of articles advising consumers on where to direct their newfound cash flow. According to data from Experian Hitwise, the number of tax searches leading to clicks on search ads has grown steadily since 2010---demonstrating that consumers are hungry for advice, and that they're willing to listen to advertisers’ suggestions (see chart below).
So, how can advertisers take advantage of tax traffic post-filing deadline? Here are some thoughts:
- Boost campaign budgets and consider adding a “tax return” and “tax refund” campaign to your account to capture residual traffic and reach consumers still considering how to spend, save, or invest their refund.
- Consider testing “tax refund” and other tax-related modifiers in ad copy.
- Launch a content ads campaign containing top tax head terms, such as “tax,” “tax refund,” and “tax return” that will allow your search ads to appear alongside relevant articles related to taxes.
Tax season is full of opportunities for financial service clients, but it can also be a great opportunity for retailers. Test out some new campaigns and find a way to take advantage of a consumer increase in cash flow. Remember, your Yahoo! account team is here to help you. Don’t hesitate to reach out for recommendations for building out and testing these new types of campaigns.
---Chelsea Boryca of Yahoo! is a Creative Lead on the Financial Services vertical and has been uncovering new search opportunities for Yahoo!'s clients for more than three years.