As companies allocate more of their budgets to internet marketing, spending on direct mail marketing is expected to drop.

According to Patricio Robles, a tech reporter at Econsultancy, a study by Borrell Associates shows that direct mail spending will fall by 39 per cent over the next five years.

In a post on the Econsultancy blog, he said direct mail has traditionally been used by companies to reach consumers with targeted offers.

This need is still apparent, although firms are now able to achieve this through effective targeting of internet advertising and email marketing.

Mr Robles pointed out that as well as being cheaper, these methods also allow advertisers to boost the effectiveness of their campaigns through A/B testing.

According to research carried out last month by Guava and Econsultancy, around 45 per cent of companies plan to spend more on pay per click marketing this year, while almost one-quarter intend to spend more on online display advertising.

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