• by David Goetzl , March 17, 2011

Media agency Carat has significantly increased its projection for U.S. ad spending growth for this year, while offering an initial sturdy forecast for 2012. Carat had projected a 1.7% bump for 2011 back in August, but now expects a 3.7% increase domestically.

Carat said the U.S. market has been recovering at a better-than-expected rate, notably with the auto sector on the rise.

In 2012, when spending should get a boost from both a presidential campaign and London Olympics, Carat projects a 5.9% increase in the U.S. ad spend.

Also, online and TV are forecast to grow this year, plus digital out-of-home spending. But a a boost is also projected for the recently bumbling radio sector. On a global basis, TV is projected to grow 6.7% in 2011 and, somewhat surprisingly, at a slightly lower pace (6.5%) in 2012.

In 2012, even with online booming and mobile emerging, TV is expected to increase its share of worldwide ad spending to 46.3%. Although struggling, Carat says newspapers would still have the second-largest share at 15%.

"TV remained remarkably resilient through 2010 -- a trend that is set to continue through 2011 and 2012," Carat said. "The scarcity of an alternative powerful mass-reach media and technological developments has helped protect the medium and ensured that TV has remained relevant for consumers and advertisers."

China is projected to have the greatest total ad spending growth this year among all measured countries (15.3%), with Russia set to lead all measured countries in 2012, with a 17.4% growth.