Group M cut its projected 2012 global ad spending 1.2 percentage points, saying it now expects a 5.1 percent increase to $506.3 billion in measured media, down from the 6.3 percent hike forecast last December.
"We attribute the decline in U.S. ad spending to a number of factors, including the loss of economic momentum, the global deterioration from all continents but particularly the Eurozone, and political and fiscal uncertainty at home for the election and beyond,” GroupM chief investment officer Rino Scanzoni said in a statement.
The WPP media unit also said it now expects a 3.6 percent increase in ad growth in America this year, down from 4 percent.
The 70-country forecast, contained in GroupM’s biannual worldwide report, “This Year, Next Year,” said 2011 ad spending rose 5 percent to $482 billion, compared to $459 billion in 2010
In 2013, growth in global ad spending is expected to rise 5.3 percent to $533.2 billion. Growth in the U.S. is projected to increase 3.1 percent to $157.2 billion in spending.
In the Eurozone region of Greece, Ireland, Italy, Portugal and Spain, ad investment fell 6 percent in 2011 and is predicted to slide a further 8.8 percent this year before stabilizing in 2012. Earlier this month Group M said ad spending in the U.K. is expected to rise 3.4 percent this year, a modest increase given the London Olympics but robust in comparison to many of the country's European neighbors.