Magna, ZO decrease expectations for 2008 ad-spending

Citing worsening economic conditions, IPG's Magna Global has decreased it's North American advertising growth estimate to just two percent ($285 billion), half of what the company originally forecasted, reports Ad Week.
The revision comes just a week after Publicis Groupe's Zenith Optimedia modestly decreased its ad growth forecast to 3.5 percent ($195 billion) from four percent. ZO's estimate is for major media, which is defined as newspapers, magazines, TV, radio, cinema, outdoor and the Internet.
The revised forecasts could signal a bumpy road ahead for many newspapers already suffering from an decrease in advertising revenues. Competition from online advertising has decreased the demand for more traditional newspaper advertisements.
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