Ad Spend Forecast Revised Upward

Marking the beginning of a moderate recovery, worldwide advertising expenditure is forecast to grow 2.9% this year, an upward revision of nearly 2 percentage points from the 1% forecast issued in October 2009, according to Carat.

The projected growth, however, is in the wake of steep spending declines in 2009. Even allowing for the projected growth, the global ad market in 2010 is expected to remain below its absolute 2006 level.

The forecast revisions were driven by an improved outlook notably in the US, China, and the UK, according to Carat, part of Aegis Media.

"This early view of future global ad spend shows the potential for modest recovery through this year and into 2011 in what looks like being an increasingly benign environment," said Jerry Buhlmann, CEO of Aegis Media.

In addition, various events this year are expected to help boost spending, particularly soccer's FIFA World Cup, the World Expo, and the Asian and Commonwealth Games.

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