It’s that time of the year when households and businesses prepare and file their tax returns. How are advertisers in the tax preparation industry getting their return on advertising? Find out more.
If you are one of those individuals or those business owners who have the obligation to file your taxes annually, you may often find the activity tedious, intimidating, and daunting. Luckily, there are services and businesses available to assist you to ensure that you file your taxes correctly, accurately, and in a timely manner.
But how exactly do you know what tax preparation services there are and what resources are available to help individuals worldwide in their tax returns? Instead of asking that fundamental question, we are going to flip that question around and ask ourselves instead: how exactly do tax preparation and financial businesses advertise their services to consumers especially in this important season?
A brief look at the financial and tax preparation services world
Financial services encompass a broad range of offerings designed to manage money for individuals, businesses, and governments. These services facilitate the movement, storage, and growth of financial assets.
The global financial services market is projected to grow from $33.38 trillion in 2024 to $35.86 trillion in 2025. In fact, Statista reported that about $30.75B was allocated to digital advertising by the Financial Services industry in 2023.
The industry can be broken down into various segments: banking, insurance, lending, investment, and tax services.
Tax services such as TurboTax, H&R Block, TaxSlayer, aim to facilitate individuals and businesses in the preparation, optimization, and filing of their income tax returns. These businesses have made tax filing smoother and easier for individuals, being able to file and optimize their returns at the comfort of their own homes.
Only 25% of consumers feel confident about filing their taxes, highlighting widespread apprehension about potential errors. Hence, the need for these tax preparation services. In fact, the value and need for this particular segment is growing more than ever.
In 2024, the tax preparation services industry is projected to generate approximately $13.4 billion in revenue, reflecting its substantial economic footprint. Moreover, around 44% of Americans intend to use tax software for filing, indicating a preference for self-filing with digital assistance. The same can be said for Canadians, as an estimated 90% of Canadians will opt for electronic filing methods during the 2025 tax filing season.
How financial service brands, tax prep services, and agencies advertise
It’s important to know how firms and tax prep services in the industry are promoting their businesses to taxpayers. After all, they also need to market and promote their services! There are various ways to advertise their tax preparation campaigns successfully. Here are some of the effective methods:
Personalized messaging
Brands tailor messaging based on consumer financial goals, leveraging data-driven insights to enhance trust and engagement.
Thought leadership and education
Financial brands use whitepapers, webinars, and reports to establish credibility and educate consumers on products like investments, credit, and insurance.
Omnichannel Approach
A mix of programmatic, search, and social advertising ensures brands stay visible across digital and traditional channels where consumers research financial solutions.
ROI-Driven Targeting
Financial brands highlight high-return opportunities for personal and business investments, using lead generation ads and retargeting to attract high-intent customers.
Trust and Security Messaging
Financial brands prioritize compliance-friendly storytelling, using ads and content to reinforce security, transparency, and regulatory trust.
Tips and tricks for tax prep businesses to get the most out of their advertising
Here are more tips and tricks to ensure your ad campaigns get the most customer reach and engagement:
- Define your audience: Know your target market and their demographics. Are the Gen Z type of first-time tax filers who would likely resort to digital means? Are they small to medium-sized businesses who know the standard process of filing their taxes but could definitely use a hand
- Campaign differently according to consumers’ behaviour: Tax season brings two types of clients: early filers and last-minute filers. Tailor your marketing to engage both groups effectively. For early filers, emphasize the advantages of filing ahead of time, such as faster refunds and avoiding the deadline rush. For late filers, showcase your ability to manage complex returns efficiently, even under tight deadlines. Leverage email campaigns, social media, and flyers to deliver these messages. Offering limited-time discounts or special promotions can further encourage clients to take action.
- Make use of email and social media marketing: Email marketing is a powerful tool for reaching potential clients. Grow your email list through your website, networking events, and community connections. Share valuable tax tips, updates on tax law changes, and key deadlines to establish trust and position yourself as a reliable expert.
Final thoughts
Tax season does not have to be daunting both for the consumers and the tax preparation businesses themselves. It’s important to know and consider your audience when running your campaigns. Understanding their behaviour and the demographics of where and how they file their taxes, what media or platforms can you advertise on that would capture their attention, and optimizing your campaigns is the key to getting the highest return on your tax advertising campaign.
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