• by Wayne Friedman , June 24, 2010

Worldwide advertising activity is improving, according to media agency company Group M.

Now the big media agency holding group is expecting a 3.5% hike in 2010 to $451 billion in worldwide advertising revenue, up from a projected 1% growth. In 2011, Group M projects a 4.5% gain.

"China remains the world's biggest contributor to ad growth in 2010, accounting for one in three of all net new ad dollars we expect this year, and one in five as the rest of the world catches up in 2011," stated GroupM Futures Director Adam Smith. Indonesia and India are the next biggest contributors from Asia.

However, the U.S. will continue to lag the global advertising economy -- still headed in a negative direction. Group M says domestic ad spending is expected to decline 1.3% in 2010 to $145 billion. This is down from the $147 billion spent in 2009, which was a 7% drop from the previous year.

Good news will return in 2011, when U.S. ad spending is estimated to rise 2.5% to $149 billion.

"The U.S media marketplace has clearly bottomed out earlier this year, and we expect moderate growth in 2011 consistent with GDP improvement," said Rino Scanzoni, chief investment officer of Group M. "Television and on-line spending will outpace other media, as they lead with return on investment metrics."

Internet advertising continues to point upward, despite the recessionary economy. Smith says, for example, that this category will add 10% to its coffers from its 2009 totals. He says: "Measured Internet added two points of global ad share in each of 2007, 2008 and 2009 and we think it will sustain a rate of one point a year this year and next, to reach 16 percent in 2011."