I'd definitely choose email over postal, as you're a technology based company and would benefit most from the versatility and speed of email over postal. Maybe put up some ads in the local paper, or contact local high schools and colleges and see if they can put up notices on their billboards or whatnot? Publicity can spread like wildfire via word of mouth if you make some happy clients who are in internet-based industries, too. For example, I offered hosting to a graphic designer (who also taught gfx at a local highschool) and he's referred me to many of his clients for hosting websites. All about making connections
With local marketing it is all about setting a good impression about yourself and locking the client into buying your services. First make yourself and your business look very good and show the future client how your services can help their business(es) or site(s). Word of mouth truly does spread like wild fire if you have a good rep for yourself a lot of people will then tell others about you and that is how you get spreaded. post articles on high school blogs or any tech savy blogs or bill boards in your area or along your day to day activities. put up flyers in computer repair stores library's and other places.
Go with some radio advertizing often it is cheap and pays back well. Also try hiring 3-4 girls/boys to spread out some brochures explaining your business. Ask your current clients for any recommendations about their friends or co-workers you can start working with. Finding clients locally is so much finnier!
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