Direct Mail Advertising - New Zealand

Ad spending in the Direct Mail Advertising market in New Zealand is forecasted to reach US$187.00m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of -1.51%, leading to a projected market volume of US$170.70m by 2030.
When compared globally, the United States is expected to generate the highest ad spending (US$20.38bn in 2024).
The average ad spending per capita in the Direct Mail Advertising market is projected to be US$35.49 in 2024.
New Zealand's Direct Mail Advertising market is experiencing a resurgence, with brands leveraging personalized campaigns to cut through digital noise.

Definition:

Direct Mail Advertising spending refers to the budget invested by advertisers in direct mail marketing campaigns that involve sending physical promotional materials, such as brochures, catalogs, and letters, directly to targeted recipients by mail. This type of spending covers various ad spending associated with the distribution of direct mail marketing.

Additional information:

Direct Mail Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

The advertising budget used for distributing direct mail advertisements

Service agencies
Consultant fees
Production costs
Design services
Printing costs

The Direct Mail Advertising market in New Zealand has been experiencing steady growth in recent years.

Customer preferences: New Zealand consumers have shown a strong preference for receiving direct mail advertisements. Many people enjoy the tangible nature of physical mail and find it more engaging than digital advertisements. Additionally, direct mail allows for more targeted and personalized messaging, which resonates well with consumers.

Trends in the market: One major trend in the Direct Mail Advertising market in New Zealand is the increasing use of data analytics and segmentation techniques. Companies are using data to better understand their target audience and create more personalized and relevant direct mail campaigns. This trend is driven by advancements in technology and the availability of customer data. Another trend is the integration of digital elements into direct mail campaigns. Companies are using QR codes, augmented reality, and other digital tools to enhance the customer experience and provide additional information or incentives. This combination of physical and digital elements creates a more interactive and engaging advertising experience.

Local special circumstances: New Zealand has a unique geography and population distribution that can impact the Direct Mail Advertising market. The country is made up of two main islands, with a significant portion of the population living in rural areas. This presents logistical challenges for delivering direct mail to remote locations. However, companies have adapted by partnering with local postal services and using innovative delivery methods to ensure that direct mail reaches all consumers.

Underlying macroeconomic factors: The overall economic stability and growth in New Zealand have contributed to the development of the Direct Mail Advertising market. A strong economy means that businesses have more resources to invest in advertising and marketing initiatives, including direct mail campaigns. Additionally, the country's low unemployment rate and high consumer confidence levels create a favorable environment for consumer spending, which in turn drives demand for direct mail advertisements. In conclusion, the Direct Mail Advertising market in New Zealand is thriving due to customer preferences for physical mail, the use of data analytics and digital integration in campaigns, the unique geography of the country, and the overall economic stability and consumer confidence.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Mail Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for distributing direct mail advertisements.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of households, and population in urban areas. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and internet coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.