Magna: Ad spending to fall this quarter before stabilizing

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New York—U.S. advertising expenditures are forecast to total $36.8 billion this quarter, down 3% from $38.0 billion for the same period last year, according to Magna, the Interpublic Group of Cos. forecasting unit.

However, Magna said, this will be the last quarter of ad spending decline in the current recession.

The company based its forecast partly on ad revenue increases in the industrial production and personal consumption sectors, both of which are expected to see resumed growth this year. Political and Olympics advertising will also help stabilize ad revenue this year, according to Magna.

Magna also revamped its projections for 2010 as a whole. It forecast a decline in ad revenue of about 0.1% for the year, after previously predicting a decline of 1.3%.

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