Direct-Mail Spending Down in 2008 and Still Falling

"The macro trend continues to be a shift toward measurable below-the-line marketing spend," Mr. Margulies said. "The reasons are clear: It's accountable and defensible when your budgets are under fire. How it gets split up is becoming a more dynamic issue. We know that digital media is going to continue to gather share, but as marketers change the way they look at different channels, I think the progression of direct mail is maturing from that spray-and-pray model to one that is more targeted and impactful. There is something to be said for having something that is tactile, very personal and, even for a split second every day, has a person's direct attention."

Spending decline
Ramesh Ratan, exec VP-chief operating officer of the Direct Marketing Association, said the association's numbers show a decline in direct-mail spending, down from $54.8 billion in 2007 to just slightly above $54 billion in 2008. Mr. Ratan said he anticipates the figure will drop again next year, and he thinks a lot of the issues the direct-mail industry is facing are due to the fact that it's currently in a state of flux.