The US is already seeing a slowdown in advertising spending, according to re-search released on the 25th March that showed cutbacks by big carmakers and media groups are weighing on broadcasters and newspaper publishers.

“The ad market remains stalled and is being engulfed by the spreading pessimism about general economic conditions,” said Jon Swallen, senior vice-president for research at TNS media intelligence, which tracks advertising spending for 2.8m brands in 20 media cat- egories.

TNS estimated that a 0.1 per cent fall in spending in the final quarter of last year meant spending for the year was up by just 0.2 per cent at $149bn, compared with growth of 4.1 per cent in 2006 and its earlier forecast of 2.6 per cent growth for 2007.

“Early figures from 2008 suggest the growth rate for measured spending has not appreciably changed,” Mr Swallen said, although ad-vertising groups hope for a lift from the Beijing Olympics and the US presidential election.

Marketers' concerns about consumer spending and corporate profits in the face of turbulent housing and financial markets led to a 1.7 per cent decline in spending on television. Falls in political “spot” advertising – after record levels in 2006 – and a 2 per cent decline in network TV budgets, offset growth in cable TV and Spanish- language broadcasts. Spending on radio fell 3.5 per cent and newspapers 5.6 per cent. The declines accelerated in the fourth quarter.

A 15.9 per cent rise in internet display advertising, which now totals 7.6 per cent of US advertising budgets, compared with 17.3 per cent growth in online spending in 2006. Consumer magazines also bucked a weakening trend, up 7 per cent over the year.

The TNS analysis showed a more bearish attitude among larger advertisers, with the 100 highest spenders cutting their expenditure by 2.6 per cent to $63.4bn.

Of the 10 largest advertisers, Procter & Gamble led the growth in packaged goods groups' spending. Carmakers and media groups cut back. Financial services overtook telecoms as the biggest spending category, with growth of 5.4 per cent.

The TNS analysis is more pessimistic than recent figures by Carat, the Aegis-owned media specialist, which said US spending had risen by 1.3 per cent in 2007 and would grow by 3.8 per cent this year, less than the 4.1 per cent it had previously forecast.