The research, which polled 1,068 professionals from around the world (36% from Europe), showed that 40% of respondents were shifting 20% or more of funds previously earmarked for traditional DM spends to digital.

The survey cites the likes of Orange, which it said predicted its entire marketing spend would be online by 2012.

However, those marketing companies that are investing in online are still not benefitting fully from the platform, with nearly half not including analytics data within their customer databases.

Four in five respondents said that they were making efforts to integrate their communications strategies.

The study said: "The mandate for marketers is clear. They need to get ready to engage online – through their own websites and in the communities that their customers and prospects belong to. And they need to get ready to engage with each other, transcending the traditional marketing silos and focusing on delivering a consistent message which provides value for the customer and the company."

Robert Keitch, chief of membership and brand at the DMA, said that there was still some "mythology" around social media. "The bottom line is that social media is part of the [broader]. Companies should consider its use and impact in the totality of all marketing they are doing.

"I'm always very suspicious of companies that say DM is dead. All the research we've done shows that it's a cocktail - that's what equals success. And the increase in commercial efficiency is phenomenal.

"I think it's a good thing for traditional. There is some rebalancing going on, but this will ultimately prove the proficiency of marketing overall."

The Alterian report is available for download (free registration required).