The Trans-Tasman Blind Spot: Why New Zealand Deserves More, Not Less, Investment

For decades, New Zealand has been treated as Australia’s smaller sibling in media and marketing circles.

Budgets, strategy, and decisions are often made in Sydney or Melbourne, with Aotearoa relegated to a line item on a spreadsheet.

In tough times, when the call comes to trim spending, New Zealand is frequently the first market to be cut.

On paper, it might look like the obvious choice: a smaller population, a smaller economy, and a media market dwarfed by Australia’s scale. But that perception misses a critical truth. New Zealand is one of the most efficient, responsive, and lucrative markets in the world for advertisers. Cutting here first is not just a mistake, it is a missed opportunity.

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Many Major Advertisers Are Trans-Tasman

Many of New Zealand’s largest advertisers are trans-Tasman clients, with budgets managed across the ditch. That interconnectedness means decision-making power often sits in Australia, where the nuances of the New Zealand market are less visible.

The result is simple: perception, not performance, drives spend.

And that is the irony. Marketers who treat New Zealand as a secondary play are overlooking some of the most compelling fundamentals in the region.

“Perception, not performance, drives spend, and that is the blind spot costing brands growth.”

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New Zealanders Spend More, Not Less

Kiwis may be fewer in number, but per capita their spending power is extraordinary. Relative to Australians, New Zealanders consistently spend more in key categories, from FMCG to streaming to retail.

Every consumer reached in New Zealand carries disproportionately higher value.

Combine that with a consumer economy that continues to show resilience, and you have a marketplace that rewards brand investment. The notion that New Zealand is too small to matter crumbles under the weight of its actual consumer contribution.

“For every dollar Australians spend in retail, Kiwis spend the equivalent of AUD $1.27.”

It is easy to assume that higher spend reflects higher prices, but the opposite is true.

According to Numbeo, the world’s largest cost-of-living database, New Zealand is cheaper across almost every category. Living in Auckland, for example, is close to 30 percent less expensive than life in Sydney.

So while New Zealand may be classed as a lower-wage economy, its lower cost of living gives consumers more discretionary power, and spend they do.

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The Media Cost Advantage No One Talks About

Here is the killer stat: media in New Zealand is dramatically cheaper than in Australia.

That means the same budget buys far greater reach and frequency on this side of the Tasman. For advertisers under pressure to deliver efficiency, New Zealand represents one of the smartest bets you can make.

In television especially, the ability to achieve national scale at speed, with cultural cut-through, costs a fraction of what it does across the ditch. In times of tightening budgets, efficiency is not a nice-to-have, it is survival.

“Efficiency is not a nice-to-have, it is survival.”

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The Cost of Cutting NZ First

When brands slash New Zealand budgets, the immediate effect is obvious: reduced presence, lost visibility, and a gap in market share.

What is less obvious is the long-term cost.

• Lost momentum – Markets do not pause when you cut spend. Competitors step in and consumer loyalty shifts.
• Harder rebound – It costs more to regain lost share than it does to maintain it.
• Missed compound growth – Stop consistent campaigns and you break the chain of memory, emotion, and brand equity.

“Treating New Zealand as expendable undermines not just local performance, but trans-Tasman performance too.”

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Small but Mighty: The Smart Marketer’s Advantage

Instead of being the first line of defence, New Zealand should be the first market to double down on.

Here is why:

• Efficiency – Lower media costs mean advertisers can test, learn, and build at lower risk.
• Speed – Campaigns can achieve national scale quickly, with fewer moving parts.
• Resilience – The economy and consumer spend continue to show strength.
• Cultural cut-through – Brands that invest locally often find themselves with deeper loyalty and stronger community presence.

For smart marketers, this is not a rounding error. It is a growth market hiding in plain sight.

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A Case for Reframing

ThinkTV’s mission has always been to help marketers and agencies see the real value of television and video in driving growth.

Part of that mission is also reframing how advertisers think about markets.

New Zealand is not a “nice-to-have.” It is not a secondary line. It is a powerhouse market with a proven track record of delivering ROI, especially through television and BVOD.

In times like these, when every dollar has to work harder, cutting the most efficient market first makes no sense.

“New Zealand is not a side play. It is one of the smartest efficiency markets in the region.”

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A Practical Lens for CMOs and Agencies

Before signing off on trans-Tasman cuts, every marketer should ask three questions:

1. What is the per-capita spend comparison?
   If every consumer in New Zealand spends more than their Australian counterpart, why reduce reach to them?
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2. What is the cost per reach point?
   With media significantly cheaper in NZ, are you overlooking one of the most cost-effective ways to maintain brand salience?
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3. What is the true cost of re-entry?
   If you cut and later need to rebuild, how much more will it cost to regain lost share?

Answering these questions with data makes the blind spot impossible to ignore.

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Conclusion

The trans-Tasman relationship is complex, but one truth is simple. New Zealand delivers outsized value for advertisers.

In a world where efficiency, resilience, and effectiveness matter more than ever, this is the last market you should cut.

Smart brands know that small but mighty is not a cliché. It is a strategy, and the numbers are there to prove it.

“New Zealand does not just deserve investment. It deserves to be first in line.”

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Sources

• WARC Media Data (Comparative CPM/CPP Benchmarks)
• Numbeo Cost of Living Index, 2025
• Retail NZ / ABS Comparative Spending Data (insert Sharon’s per-capita analysis)
• ThinkTV NZ Market Efficiency Insights
• Consumer Confidence Index, Westpac McDermott Miller 2025