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Report says U.S. ad spending to fall in real terms

Published on .

New York--Advertising spending will decline in real terms this year for the first time since the recession of the early 1990's, according to a report by one of the country's leading ad agencies. Zenith Media, a New York-based media planning and buying agency, said it is roughly halving its estimate of growth in advertising spending this year to 2.4%, which is a decline of 0.1% after stripping out the expected rate of inflation. While the decline seems insignificant, it will hit the ad and media industries hard because it follows two years in which ad spending was inflated by the dot-com gold rush.
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