Realized Gains Search advertising that pays dividends this tax season

Health Care Reform and Health Insurance

• 20% of Americans will now need to look for health insurance coverage.1

The Fair Share Tax

• The tax proposal calls for millionaires to pay at least 30 % of their AGI in income tax.2

Fixed Rate Brackets

• The 2013 percentages will remain, but the IRS will draw the lines in slightly different places.2

Follow the Budget Talk

• Wrangling continues in Washington. More changes are coming.

1. TurboTax, Sept 2013. 2. CPA Services, Sept 2013.

For individuals: failure to have insurance

Source: TurboTax Site, September 30, 2013.

For businesses: health insurance tax

Visits to top tax and DIY sites (e.g., as TurboTax, H&R Block and TaxAct) increased from 2012 to 2013.

Complexity increases due to the Affordable Care Act, having an impact on personal taxes. DIY filers should find increased value in leveraging online software and brick and mortar services.

The Internal Revenue Service on October 22nd announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.

Source: eHow Money 2013.

Rising tax rates

Preparation and engagement via smartphone

More electronic filings

Meeting preparers virtually

Encountering tax identity theft

Source: Projections of Federal Tax Returns, 2011 – 2018, IRS.gov.

4 out of 5 projected number of tax returns submitted electronically in 2012

22% average annual increase from 2012-2018

131.1 Million estimated number of tax returns submitted electronically in 2012

TurboTax SnapTax

TaxACT Central

IRS2Go

H&R Block 1040EZ

Apps

Source: eMarketer, July 2013.

May 2013 5.3 million users

June 2013 5.5 million users

Percentage change 5 percent growth in users from May to June

Source: comScore, April 2011 & April 2012.

18.1% 17.7%

60% 59.8% Intuit (TurboTax)

InfoSpace (TaxAct)

H&R Block

Other 8.3% 7.9%

13.6% 14.7%

% of Units through Apr 19, 2011

% of Units through Apr 18, 2012

Online Tax Preparation Provider

Source: comScore, 2012 & 2013.

Sources: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-7), US Census Bureau, distribution of personal income, 2010

comScore Media Metrix, US, Sept 2012. Indexing compared to overall Internet population. Note: September 2012 data was used because the month is

more reflective of when people are filing their tax extensions.

Less than

10

10-20 20-30 30-40 40-50 50-75 75-100 100-200 200-500 500-1,000 More than

1,000

Avera

ge T

ax

Rate

Income Level (in thousands)

Zero Tax Liability

38.6% of US

Population

48% of US

population

6.6% of US

population

Tax Advertiser Target Market

Yahoo Bing Network Audience Strength

Source: comScore Plan Metrix, US, September 2012, custom measure created using comScore indices and duplication. Note: September 2012 data was

used because the month is more reflective of when people are filing their tax extensions.

Compared to Google, the Yahoo Bing Network audience is

8%

more likely to have bought personal finance/tax software online.

Source: comScore Plan Metrix, US, September 2012, custom measure created using comScore indices and duplication. Note: September 2012 data was

used because the month is more reflective of when people are filing their tax extensions.

More likely to have bought personal finance/tax software offline

More likely to have searched for information on personal finance/tax software online

More likely to own personal finance/tax software

Source: comScore Search Categories Report (custom), US, March 2013. March 2013 is used to reflect tax season.

Total tax paid clicks

Total tax searchers 2M

2M of all tax paid clicks

Total tax searches 5M

37%

Tax searchers not reached on Google 1M

Yahoo Bing Network marketplace insights

Source: Microsoft internal query data on O&O, PC and Tablet only. Data range: 1/1/2013 to 4/30/2013.

Source: Microsoft internal query data on O&O, PC and Tablet only. Data range: 1/1/2013 to 4/30/2013.

Source: Microsoft internal query data on O&O, PC and Tablet only. Data range: 1/1/2013 to 5/1/2013.

Strong search intent Opportunity to drive additional clicks

Sep-12 Sep-13

Mobile

PC

Tablet

+108%

+16%

+120%

Sep-12 Sep-13

Mobile

PC

Tablet

+74%

-18%

+19%

YoY Click Trends YoY Impression Trends

Source: Microsoft internal data, 2013.

Bing Ads features to drive performance

One billion use Office

700 million registered users

5.6 billion searches per month

One billion use Office

One billion use Office

Location Extensions Sitelink Extensions* Call Extensions Merchant Ratings**

Source: Performance study based upon beta testing data on Bing O&O only and is not a guarantee of performance. Increase in clicks is dependent

upon a seasonality and advertiser vehicle.

9.7% higher CTR using Sitelink Extensions than with standard text ads

Sitelink Extensions gives your ad more dynamic offerings

Source: comScore Core Search (custom), US, June 2013 / comScore qSearch (custom), US, June 2013.

Reach 163M unique searchers in three ways with Call Extensions

Better transactions with Merchant Ratings

46% more clicks

19% more clicks

Microsoft internal data, Sept - Oct 2013

Broad match can help you unlock volume and conversions

See how broad match performs across Financial Services

Bid on all match types with highest bid on exact match.

Use broad match modifier to increase relevance of keyword (Example: “file +tax extension +online”).

Bid for top positions for top converting keywords during peak tax season to increase click volume and CTR.

Utilize Bing Ads device targeting options and separate mobile campaigns from PC campaigns.

Tailor mobile ad copy to respond to mobile device owners’ primary research intention.

For in-store tax help, leverage click-to-call and mapping technology to drive traffic right to your location.

Adding Sitelink Extensions is an imperative and proven tactic to increase CTR.

Test ad copy early in January before the first peak and run with the best performing ads. Remember to use dynamic insertions in your ads and have a clear call to action.

Update ad copy during the tax season as consumer searches change from branded and research terms early in the season, to refund and tax extensions later.

Incremental bidding is a powerful way for small businesses to compete against industry giants.

Know your audience and target by geographic location, day of week, time of day, gender, age and device type/OS.

When driving foot traffic, target potential customers who live within a 5- to 100-mile radius from your business or other specified locations.

Align budgets & bids to query trends. Peak 1 represents 60% of the tax season with nearly double the search queries of Peak 2.1

Adopt key features. Adopt and optimize for Sitelink Extensions, optimizing for mainline ads with longer ad titles, Click-to-Call and Location Extensions. Consider opting into Content Ads to unlock more clicks.

Invest Wisely. Take advantage of a more cost effective surge in tax paid clicks by maximizing your resources first on the Yahoo Bing Network this year.2

1. Yahoo Bing Network Study, Peak 1: January 1 - March 11. Peak 2: March 11 – April. 2. AdGooroo Special Report, Yahoo! Bing PPC Performance

Metrics: What Search Marketers Need to Know About “The Other Search Engine.” March 2013.

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© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market

conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.