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This is in stark contrast to the Bellwether report from the Institute of Practitioners in Advertising (IPA). It held that direct marketing budgets were ‘revised down to the greatest extent in its survey history’. It explained that campaigns were being converted from post to email in a bid to cut costs.

When asked why the DMA report was in such conflict with the Bellwether, Mike Barnes, marketing and business development director at the DMA said: Our report looks at the period between April 07 and March 08. The Bellwether is quarterly and looks at the months between April 08 and June 08. It maybe that the effects of the credit crunch are only just hitting us now.

Direct mail has grown slightly, although there has been a slight decrease in consumer direct mail. This is down to more awareness of green issues and more highly targeted marketing across several channels, said Barnes.

David Balko, business director at Draftfcb, said: I would agree with the Bellwether report in that spend on direct mail is falling in favour of online communications.

However, it is not a dying industry because when done properly it can be very powerful. The industry will be under more scrutiny in coming months and years because of the economic climate.

Mike Welsh, the chief executive of Craik Jones, said during a recession direct marketing tends to do well because clients want to see measurable results, but thought restrictions in budgets would force the industry towards digital. Direct mail can be too expensive, the industry has been slow to embrace digital but budget cuts will give the industry the kick it needs in to the digital space.

Marketing Direct’s own recent Top 100 Mailers report, compiled from more than 6,000 consumers by media consultancy Billetts, shows spend on direct mail in 2007 dropped by nine per cent. Capital One, formerly one of the UK's top three spenders, fell eight places to number 10 as it reduced its expenditure by 65 per cent to £11.4m in 2007.