BC-US--Advertising-Forecast,0121

Forecaster raises 2010 ad spending forecast

A leading advertising forecaster is raising its 2010 outlook on global ad spending, saying companies are gaining more confidence that the economic recovery will stick.

ZenithOptimedia sees combined ad spending in various media -- including newspapers, television and billboards -- growing by 2.2 percent this year to $456 billion, up from its previous forecast of slightly less than 1 percent.

It's the second time in a row that the forecaster has upgraded its 2010 outlook. The two upgrades followed 18 months of consecutive downgrades.

Ad spending is stabilizing among developed nations in North America, Western Europe and Japan while developing economies are expected to resume their rapid growth.

Online ad spending is expected to increase by nearly 13 percent this year.