Direct-Mail Spending Down in 2008 and Still Falling

When the consumer market started to soften and the flow of dollars slowed down, marketers began to shift their focus from acquisition to retention, causing a falloff in direct-mail outlays, Mr. Ratan said. "Direct mail has always been a powerful acquisition tool," Mr. Ratan said. "But as people move their dollars from acquisition to retention, those dollars move within the direct marketing channel from direct mail to e-mail. Some of the dollar movement is to things that are online or more digital, but it's caused by this marketing strategy moving from acquisition to retention."