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This is the year
for online tax filing

More than half of all federal tax payers will do so

By Diego Vasquez

   For the past few years the federal government has been encouraging people to file their taxes online, but it has not been an easy sell, even with the far greater convenience it offers. People have been reluctant to trust their most intimate financial affairs to the internet.
   But that's changing, and quickly it appears. This tax season, more Americans than not will file their federal tax returns online.
   The pattern is much like that in financial services. People first went online to gather information, then began acting on that information, using the internet for online banking and stock trading.
   Initially, taxpayers turned to the web to research tax issues, but as their comfort level has grown, more and more are choosing to file their tax returns online. The IRS reports that in 2002 46.9 million people filed online, 35.6 percent of all filers. That number rose to 52.9 million in 2003, or 40 percent, and last year it rose again to 61.5 million, or 47 percent. 
   So far this year, about 42.7 million have filed online, and the IRS thinks that the final number will top 50 percent.

   What's interesting is that the pace of growth has been so strong even though users cannot file directly with the IRS but must do so through a third party, such as TurboTax.

   Meanwhile, overall traffic to tax sites continues to rise. In February, traffic to IRS.gov stood at 14.3 million, according to Nielsen//NetRatings, only up slightly from a year earlier, when 14.07 million users logged on. But that's up smartly from 10.1 million in February 2003 and 8.09 million in February 2002.
    In February, TurboTax pulled away as the top site for filing taxes. During February 2004, traffic to TurboTax.com was at 4.87 million visitors, slightly more than competitor HRBlock.com’s 4.49 million.
   But this February TuboTax.com jumped 39.6 percent to 6.80 million visitors, while archrival HRBlock.com fell 27.4 percent, to 3.26 million visitors. 
   The sites TaxCut.com, IRS.com (not to be confused with IRS.gov) and TaxAct.com all offer similar services as TurboTax and HRBlock.com, but those sites attract only a fraction of the visitors, and all three are down this year versus last.
   TaxAct.com attracted 1.47 million visitors in February, down 2.6 percent versus a year earlier. TaxCut.com attracted 1.18 million, down 15.9 percent, and IRS.com, which is powered by H&R Block, drew 1.05 million, down 39.6 percent.
   Elsewhere on the internet, March Madness has hit and ESPN.com is leading the way online, according to internet tracking company Hitwise.
   ESPN.com’s Men’s College Basketball site claimed 33.14 percent of the market share of visits to Hitwise’s March Madness category of sites during the week ending March 12, far and away the online leader.
   Yahoo! Sports Men’s College Basketball (20.64 percent), CBS Sportsline College Basketball (11.33 percent), ESPN Fantasy Games (7.57 percent) and Foxsports College Basketball (6.33 percent) made up the rest of Hitwise’s top five March Madness sites.
    On the charts, Microsoft, Time Warner, Yahoo, Google and eBay were once again the top five parent companies during the week ending March 13, according to Nielsen//NetRatings, with the U.S. government falling to No. 6. Yahoo, MSN, Microsoft, AOL and Google remained the top five brands.
    Once again, average usage stayed even at 16 visits per person and 34 domains visited per person, but PC time per person fell 0.29 percent to just over 15 hours and 39 minutes.

 

Top 25 parent companies
Week Ended March 13

#

Parent

Unique Audience (000)

Reach %

Time spent per person (hh:mm:ss)

1

Microsoft

75,529

60.0

0:40:54

2

Time Warner

66,757

53.0

1:51:27

3

Yahoo!

63,092

50.1

1:05:32

4

Google

46,398

36.9

0:15:42

5

eBay

25,024

19.9

1:03:46

6

United States Government

24,836

19.7

0:16:57

7

RealNetworks

17,919

14.2

0:19:50

8

InterActiveCorp

16,900

13.4

0:12:15

9

Walt Disney Internet Group

15,123

12.0

0:23:55

10

Amazon

14,950

11.9

0:12:16

11

Ask Jeeves

13,938

11.1

0:13:55

12

Landmark Communications

13,743

10.9

0:08:05

13

United Online

13,391

10.6

0:32:48

14

Viacom International

11,251

8.9

0:14:39

15

Apple Computer

10,325

8.2

0:19:32

16

Verizon Communications

9,973

7.9

0:11:55

17

CNET Networks

9,444

7.5

0:09:51

18

Daum Communications

8,820

7.0

0:05:00

19

Gannett

8,563

6.8

0:10:22

20

AWS Convergence Technologies

8,386

6.7

0:10:21

21

About-Primedia

8,107

6.4

0:04:17

22

Cendant

7,820

6.2

0:11:42

23

Comcast Corp.

7,703

6.1

0:22:08

24

Network Associates

7,506

6.0

0:16:26

25

SBC Communications

7,387

5.9

0:11:29

Source: Nielsen//NetRatings

 

Top 25 brands
Week Ended March 13

 

Parent

Unique Audience (000)

Reach %

Time spent per person (hh:mm:ss)

1

Yahoo!

62,699

49.8

1:05:35

2

MSN

58,253

46.3

0:37:02

3

Microsoft

56,933

45.2

0:16:19

4

AOL

49,286

39.1

2:18:15

5

Google

45,595

36.2

0:15:16

6

eBay

24,141

19.2

1:02:25

7

Real

17,418

13.8

0:19:14

8

Weather Channel

13,455

10.7

0:08:04

9

MapQuest

12,920

10.3

0:07:50

10

Amazon

12,514

9.9

0:11:28

11

CNN

10,562

8.4

0:20:18

12

Apple

10,325

8.2

0:19:32

13

Lycos Network

8,820

7.0

0:05:00

14

Netscape

8,648

6.9

0:15:44

15

WeatherBug

8,273

6.6

0:10:28

16

McAfee

7,239

5.8

0:16:50

17

About.com

6,898

5.5

0:04:05

18

ESPN

6,720

5.3

0:30:08

19

Comcast

6,640

5.3

0:24:45

20

Expedia

6,556

5.2

0:09:05

21

Paypal

6,448

5.1

0:13:34

22

Dell

6,429

5.1

0:13:01

23

Bank of America

5,996

4.8

0:26:50

24

Gorilla Nation Media

5,828

4.6

0:06:21

25

EarthLink

5,715

4.5

0:36:00

Source: Nielsen//NetRatings

 

Top 25 advertisers 
(excludes house ads)
Week Ended March 13

#

Company

Impressions (000)

1

Netflix, Inc.

672,658

2

LowerMyBills.com, Inc.

586,051

3

Vonage Holdings Corp

579,859

4

Ameritrade Holding Corporation

444,386

5

Monster Worldwide, Inc.

421,987

6

Dell Computer Corporation

363,221

7

United Online, Inc.

356,082

8

NexTag.com

355,911

9

Scottrade, Inc.

336,700

10

General Motors Corporation

309,063

11

Orbitz

305,970

12

InterActiveCorp

281,158

13

eTravelTrends Inc.

255,371

14

Viacom Inc

248,464

15

Apollo Group, Inc.

240,782

16

BellSouth Corporation

239,186

17

j2 Global Communications, Inc.

215,445

18

GAIN Publishing

202,352

19

MatchNet plc

202,087

20

Lavalife Inc.

193,605

21

Fidelity Investments

191,746

22

E*TRADE FINANCIAL Corp.

191,134

23

Verizon Communications, Inc.

188,747

24

TD Bank Financial Group

186,443

25

eDiets.com, Inc.

186,330

Source: Nielsen//NetRatings AdRelevance

 

Top 25 advertising sites
(excludes house ads)
Week Ended March 13

 

Company

Impressions (000)

1

Yahoo!

4,731,950

2

MSN

2,542,955

3

eBay

883,284

4

AOL.com

689,921

5

myspace

656,236

6

CNN

551,798

7

FOXNEWS.COM

467,275

8

Juno

451,153

9

NetZero

408,168

10

iWon

342,772

11

New York Times

339,408

12

The Weather Channel

322,819

13

ESPN.com

304,538

14

Excite

265,793

15

About.com

220,743

16

Realtor.com

218,717

17

Netscape

215,587

18

MSNBC

199,726

19

Classmates

186,878

20

The Weather Underground

173,738

21

EarthLink

167,592

22

Webshots

153,696

23

Pogo

153,472

24

Drudge Report

144,180

25

Forbes

128,414

Source: Nielsen//NetRatings AdRelevance

 

Average use
Week Ended March 13

 

 

Current Week

Last Week

% Change

 

Sessions/Visits per Person

16

16

0

 

Domains Visited per Person

34

34

0

 

PC Time per Person

15:39:16

15:42:00

-0.29

 

Active Digital Media Universe

125,910,177

126,048,315

-0.11

 

Current Digital Media Universe Estimate

204,915,040

204,313,467

0.29

Source: Nielsen//Net Ratings AdRelevance


March 22, 2005 © 2005 Media Life


- Diego Vasquez is a staff writer for Media Life.


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