Top 3 Online Tax Prep Providers Continue to Account for 9 in 10 Online Tax Units Filed
An analysis of the share of online tax units or returns filed through online tax preparation services for the tax season through April 18, 2012 shows that Intuit's TurboTax service led the way with 59.8 percent of all self-prepared units filed online. The number of returns filed through TurboTax grew 11 percent vs. year ago – the second highest growth rate seen for this category. TaxACT, recently acquired by InfoSpace, ranked second with 17.7 percent of tax units and a year-over-year growth rate of 9 percent in the number of returns filed online. H&R Block rounded out the top 3 with 14.7 percent market share while posting the strongest year-over-year growth rate in number of returned filed at 20 percent.
Top 3 Providers Also Dominate Display Advertising for Tax Prep Category
An analysis of display advertising in the Tax Preparation & Advisory category during Q1 2012 shows that the top 3 online tax prep providers accounted for more than 93 percent of all category display ads during the quarter. Intuit led the category with 36 percent of display ad impressions, followed closely by H&R Block and TaxAct, each at nearly 29 percent.
"Online advertising is becoming a more important part of the marketing mix for the tax prep category, and we once again saw the top 3 providers dominate the landscape with more than 90 percent market share," added Mr. Jurutka. "However, while Intuit holds a strong leadership position in terms of share of online filings, it maintained that position without investing a commensurate share of online advertising."