Carat: Global ad spending ‘worse than previously forecast'

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Paris—Aegis Group's media communications agency Carat has cut its forecast for worldwide advertising expenditures for this year, projecting a 9.8% falloff from 2008. In March, Carat projected a 5.8% drop.

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.

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