Category Overview January 2015 Tax Prep

Category Overview: Big Business Tax preparation is unusual in that even more so than almost any other industry, it provides a service which assists with a process that legally every adult American is required to do – submit an income tax return.  Because of that, tax preparation is big business – 38,287 firms operated in the field last year, generating 7.7 billion in annual revenue. (Source:  Total ad spending by tax preparation services (both consumer and business) amounted to $195.8 million in 2013, down 1.4% from 2012 spending of $198.6 million. Overall ad spending by accounting and auditing services (both consumer and business)totaled $17.0 million in 2013, an increase of 32.4% (Source: Kantar Media, 2014 )

Category Overview: Highly Seasonal One of the most notable aspects of the tax preparation industry is how seasonal it is – the industry only comes into being for essentially the four months before April 15, the day on which income tax returns are due for individuals.  Upcoming tax-filing season will start on January 20, 2015; the Tuesday after the MLK Federal Holiday, the IRS will begin accepting and processing both electronically filed and paper tax returns.  Based on the results of a 2014 survey of approximately 6,500 consumers, conducted by the National Retail Federation, when the respondents planned to file their taxes:  By mid-February, 22.7%  By the end of February, 36.7%  March, 25.9%  April, 14.7%.

2015 Consumer Challenge: IRS Budget Cuts 2015 Filing Season Predicted to be Miserable  IRS is facing budgets cuts, while in the meantime, new laws keep being passed that the IRS has to implement (ex: Affordable Care Act and Foreign Account Tax Compliance Act)  IRS Commissioner John Koskinsen warned that close to half the people trying to reach the IRS by phone might not get through during the 2015 tax filing season.  “Phone service could plummet to 53%” with average hold time projected at 34 minutes.  “The filing season is going to be the worst filing season since I’ve been the National Taxpayer Advocate {in 2001}; I’d love to be proved wrong, but I think it will rival the 1985 filing season when returns disappeared,” said Nina Olson, National Taxpayer Advocate (Source: Forbes.com, “IRS Commissioner Predicts Miserable 2015 Filing Season”, 11/04/2014)Forbes.com, “IRS Commissioner Predicts Miserable 2015 Filing Season”, 11/04/2014)

2015 Consumer Challenge: Affordable Care Act This will be the first filing season with two major provisions from the Affordable Care Act- the premium tax credit and the individual shared responsibility payment- on Form  Many consumers are not aware they have to apply to receive Exemptions, and many time consuming exemptions requiring mailing signed papers to the exchanges: these are processed manually which could take a couple weeks  Uninsured people who cannot qualify for an exemption will be required to pay a penalty  Reconciling: People who bought subsidized insurance on the exchanges received what is actually an advance on tax credits Source: NYTimes.com, “Affordable Care Act’s Tax Effects Now Loom for Filers”, December 25, 2014.NYTimes.com, “Affordable Care Act’s Tax Effects Now Loom for Filers”, December 25, 2014.

Trends  Taxes continue to be more and more complicated, and consumers need to utilize professionals  Tax Prep & Returns continue to go online, from e-file and returns direct deposited, to tax prep software, etc. o The IRS estimated that 45.2 million taxpayers filed their returns from a home computer in 2013, up 4.6% from the prior year (Source: Internal Revenue Services, 2014)  According to a 2014 National Retail Federation survey of approximately 6,500 consumers, how the respondents planned to prepare their tax returns: o Prepare their returns themselves by hand, 11.9%; o Prepare their returns themselves using computer software, 38.4%; o Use an accountant, 22.6%; o Use a tax preparation service, 17.4%; o Have their spouse, friend or other family relative prepare them, 9.7%

Prospecting  Search online/Yelp: Geographic Area +  Tax Prep  Tax Services  Accountants  Financial Planners

Case Study: Radio Works for Accounting Objective:  Undisclosed software manufacturer needed a strong introduction for its small business accounting software to go against its number one competitor. Solution:  Presenting sponsorship of small business advice radio programs featuring profiles of local business leaders in the fastest small business growth markets.  Software was given away daily to small businesses of the day. Results:  Sales in supported markets outperformed other markets by 42% Source: RAB

Why Radio?  Radio has established itself as an excellent vehicle for advertisers to deliver their messages to an increasing number of potential buyers.  Each week, radio reaches 91.5% of persons ages 12+, and 67.1% of these consumers on a daily basis. In all, 244,000,000 Americans ages 12- and-older listen to radio every week. (Source: Nielsen Audio, 2014 )  Radio's weekly reach includes 84.1% of adults 18+ who utilized any on-site tax preparation service, CPA or other tax professional in the previous year, along with 84.4% of consumers who have used a financial planner or advisor. (Source: GfK MRI, 2014 )

Thank you! Presented by Alpha Media

Radio reaches 92% of all U.S. consumers every week… Listeners continue to turn to Radio for news, information and entertainment, despite an ever-increasing selection of media options. 241,463,000 Weekly Reach Source: December RADAR® 115 National Radio Listening Report (Persons 12+ Monday-Sunday 24-Hour Weekly Cume)

Source: Scarborough USA Release 2 (12 months only) 88 % 87 % Adults 18+ who used an accountant in the past year Adults 18+ who used a financial planner in the past year Adults 18+ who used an internet/online tax preparation program or service Radio is Relevant

Source: Gfk MRI, - Mediamark Research, Inc Doublebase Radio is Relevant Adults 18+ who used a tax preparation professional or service or a CPA or other Financial Professional in the past year: Almost 60% listen to Traffic Reports Are active listeners to Sports Play-by-Play Almost 18% of those who used a tax preparation professional or service Over 22% of those who used a CPA or other financial professional

Radio is Relevant Adults 18+ who used a tax preparation professional or service or a CPA or other Financial Professional in the past year: Daypart listening trends: 52-55% listen to the Radio during morning drive, weekdays 6A-10A 37-39% listen during the day 10A-3P weekdays Almost 50% tune-in during the afternoon commute, weekdays 3P-7P An average of 15% are listening 7P-Midnight % listen during the day on the weekends. Source: Gfk MRI, - Mediamark Research, Inc Doublebase