FINANCIAL ANALYSTS TELL CONFERENCE OF LIGHT AHEAD

Predict Year-End Ad Industry Revenue Improvement

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ORLANDO (AdAge.com) -- Financial analysts here at the American Association of Advertising Agencies' Media Conference are optimistic that advertising is improving
Photo: CNBC
CNBC anchor Ron Insana sees positive recovery signs in inventory levels.
gradually and will pick up steam by the end of the year.

CNBC anchor and panel host Ron Insana suggested the overall economy in the first quarter is improving because inventory supplies are going down -- a normal positive sign of good economic activity.

"We could see a 3% to 4% growth rate," he said.

Ready to spend?
He said with the Federal Reserve continuing to fuel the overall market with cheap money, marketers may finally be ready to spend. "It has put a floor under the economic activity," he added.

For the advertising market itself Jonathan Jacoby, managing director of SunTrust Bank, predicted that there could be a 2% to 3% improvement

Read full conference coverage on AdAge.com.
in overall U.S. advertising revenues this year.

Automakers
"We are more optimistic than others," said Mr. Jacoby. "March is looking good. A number of big automakers are doing promotional deals. Political spending in the second part of the year will also help."

On the more pessimistic side, Lanny Baker, managing director of the equity research department at Salomon Smith Barney in San Francisco, said he believes the worldwide advertising market will drop 0.6% for the year, but the U.S. market will climb 1.9% for the year.

He said he also believes that the second half will show improvement.

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