Carat projected even worse cutbacks for U.S. advertising, anticipating that ad spending will drop 16.3% this year compared with last year. The agency previously forecast a U.S. drop of 9.8% for the year.
The only bright spot remains online advertising, but even here growth projections were revamped. Carat earlier had projected online ad growth of 6.3%, but has revised that to 1%.
The company said growth will return next year, with ad spend rising 1% worldwide with a general economic recovery, particularly in countries such as China. However, the U.S. advertising market won't recover until the second half of 2010 at the earliest, Carat predicted.