Adspend Drop Revised

Zenith Optimedia Group revised its outlook for U.S. ad spending upward today, predicting that spending in major media in the U.S. will shrink by only 1.2 percent this year, to $138 billion. In April, the closely watched forecast had 2002 media spending declining by 1.8 percent to $132 billion.

The report noted that the recent aftershocks in the stock market resulting from turmoil afflicting cor por ations such as WorldCom, Xerox, Tyco and others lately represent the extreme point of a general malaise vis-à-vis profits.

However, the overall economy does show signs of improvement, albeit very gradually, said Rich Hamilton, Zenith Optimedia’s chief executive for the Americas.

“The U.S.