US advertising forecast for 2008 is not looking bright

Notwithstanding the online advertising�s good performance along with heavy expenditure prediction due to the coming Olympics and US Presidential elections, the United States� advertising market will not turn out any extraordinary result next year, predicts Universal McCann, a division of Interpublic Group in its latest report.

The report prepared by Robert Coen, director of forecasting at Universal further envisages that advertising spending in US will increase by only 3.7% next year. In 2007, the industry grew only by 0.7% over last year, while broadly US economy was back on track with 4.7% average. Advertising, as industry thus, is trailing the growth of the broader economy.

US media companies are worried. Threats from digital technologies are looming large over traditional advertising models. Add to that other precarious reasons like housing bubble, rising oil price and a possible economic slowdown.

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Tags: USA advertising, digital advertising, Olympics ad, Interpublic Group, Universal McCann, housing bubble, rising oil price, US economic slowdown.