Ad agency growth to decelerate

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New York—Ad agency growth will slow to about 2.9% in 2012, according to a forecast from investment bank Barclays Capital. This is down sharply from a projection of 5.6% growth this year, according to the investment bank.

Nevertheless, Barclays said that agencies are in good shape to more forward, noting in a statement, “The tailwinds from digital and emerging markets offer structural growth in an environment where cyclical growth may be hard to come by.”

The company's predictions are based on combined average organic growth for agencies at major holding companies, including Aegis Group, Havas, Interpublic, Omnicom, Publicis Groupe and WPP.

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