Judging by this week’s business news headlines featuring Microsoft Corp.’s (Nasdaq:MSFT) on again/off again talks to buy Yahoo! Inc. (Nasdaq:YHOO), it would be tempting to surmise that Internet advertising is the only advertising game in town.

But headlines can deceive, or at least distort the true state of affairs in politics, in life and in business. While online advertising is indeed a thriving business, another segment of the advertising industry (arguably as far offline as you can get) is not doing so badly either.

Valassis Communications Inc. (NYSE:VCI) is a company that provides direct mail advertising and marketing services to some 15,000 advertisers worldwide, and business is booming. Fiscal 2007 revenues, helped significantly by the March 2007 acquisition of its rival Advo Inc., grew to $2.24 billion from $1.04 billon in 2006. Net income totaled $58 million in 2007, up from $51.3 million in 2006.

All this from a direct mail company, the kind that puts the inserts in your Sunday paper and fills your mail box (not your email) with those coupon books that some people love and others send straight to the recycling bin.

No matter what you may think of direct mail, advertisers continue to love it, often preferring it to other newer and higher-tech forms of advertising. Eastman . . .

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