The new business unit follows the acquisition by Datamail in early 2006 of the direct-mail division of print company Moore Gallagher.

Datamail Group Chief Executive Gary Woodham says direct-mail is a highly-efficient and cost-effective means of reaching customers. New digital processes also mean “the possibilities for what can be designed, printed and mailed are mind-boggling“.

Direct-mail is still in its infancy in New Zealand, says Mr Woodham. ”We’re barely scratching the surface of the advertising market compared with, say, the situation in the UK, the US and Europe.”

However rapid improvements in the standard of postal address databases – led by Datamail’s owner, New Zealand Post – now mean that businesses have accurate and up-to-date information to help target customers and avoid marketing and advertising ‘wastage’.

New Zealand Post’s latest addressing data enables information from the 2006 Census to be more easily accessed and used. While Statistics New Zealand has stringent confidentiality rules, so no individuals or families or even information on the occupants of any particular dwelling can be identified, New Zealand Post is able to select the suburbs with the relevant demographic profile that marketers want to look at.

As a result, direct mail goes exclusively to the people most likely to be interested and likely to respond positively. “This means there’s far less chance that advertising product, for example, will go straight into the bin.”
David Allen, Datamail’s Document Solutions General Manager, says Kinetic¹²¹ builds on Moore Gallagher’s excellent reputation for one-off or short-run printing and mailing projects, while adding the capabilities to stimulate further growth in direct mail.

According to the US Postal Service, direct mail is the fastest growing segment of the US advertising market, increasing at twice the rate of any other media – and Mr Allen says New Zealand is set to follow the trend.

In the US, direct mail revenue is growing at up to 5 percent per year. The US Postal Service says the foundation for this growth is based on factors such as the ‘targetability and measurability’ of direct mail, response rates, and the return on investment which is among the highest of all advertising media.

Some growth can also be attributed to recent developments in blocking spam e-mails and telemarketing calls.

Mr Allen says direct mail can compete with other advertising formats such as radio, television and newspapers – but it can also add value to a campaign by complementing other formats. “It can bring an element of intimacy to a mass-marketing initiative.”

This approach has stronger appeal for the highly sought after 15-34 age-group. Recent research conducted by The Nielsen Company showed that despite the various channels available to reach this group they remain a more receptive audience for personally addressed mail. The same research showed that two in five people say they have visited a store or made an enquiry prompted by direct mail.

Kinetic¹²¹’s key point of difference is its ability to be able to draw on the significant resources of the other brands within the Datamail Group to offer customers a wider range of services, including full-colour variable printing, data analysis and handling, print logistics and design work.

Kinetic¹²¹ staff are based in Auckland, Wellington and Christchurch. Kinetic¹²¹ is part of the Datamail Group, employing more than 2000 staff on both sides of the Tasman and with an annual group turnover in excess of $200 million. For further information on Kinetic¹²¹ visit www.kinetic121.co.nz

For further details please contact:

Gary Woodham - Chief Executive Datamail Group

Tel 04 568 8200, Mob 021 916 481, gary.woodham@datamail.co.nz

David Allen - General Manager Document Solutions

Tel 04 568 8200, Mob 021 484 167, david.allen@datamail.co.nz

Debbie Summers - Group Marketing Communications Manager

Tel 04 568 8200, Mob 027 444 2131, debbie.summers@datamail.co.nz