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S&P estimates 3.1% growth in ad spending this year, 0.5% next year

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New York—McGraw-Hill Cos.’ Standard & Poor’s rating service said Tuesday that it expects U.S. ad spending to increase 3.1% this year, due to the midterm elections in November and the Winter Olympics. The outlook was included in a report called “Economic Factors Support a Gradual Recovery in U.S. Advertising,” which was released Tuesday.

S&P said it expected growth in ad spending to slow to 0.5% in 2011 compared with 2010 due to the absence of midterm elections and the Winter Olympics. S&P said that it has reduced its number of downgrades of media companies by about one-third so far this year compared to 2009.

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