A US ad spending forecast update, released today by MagnaGlobal, paints a rosier picture than previously reported.

Barring a double dip recession MagnaGlobal is forecasting a 2.1 percent growth for the US ad economy for 2010 to $169.9 billion....an increase of 31% over the previously reported forecast. This does NOT include Olympic or political media investments in TV which would bring the growth in at a very decent 3.4 percent for 2010.

The annual run rate for growth through 2015 is expected to be 3.6 percent.

As the industry braces for a return to a somewhat normal environment it begs the question of readiness. Staff cutbacks over the past several years created a void of intellectual capital that agencies and marketers need to quickly address. As a bounce-back occurs will we have the manpower to effectively manage normal growth?

Not all is positive, however. A downturn in online classifieds is causing an overall reduction in the double digit growth rate for the online sector. Direct Media (yellow pages, paid search, lead generation, directories and direct mail) is signaling a slowdown in growth and a possible short term return to awareness-driven media channels.

You can register for a free download of the report here: www.magnaglobal.com

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