The strategic media division of Interpublic Group says that, on a constant currency basis, revenue for the year will rise 5.2% to $428.4bn (£265.7bn) rather than the 5.6% it forecast at the end of last year. However, the report does upgrade long-term growth rates for ad revenues with stronger expectations for emerging markets.
Magnaglobal says that the compounded annual growth rate for the global industry for the next five years is 6.8%, up from its original expectations of 6.3%.
The report says that traditional television advertising is expected to grow 8.3% on average through to 2016 with its biggest growth in share taking place in North America.
Online advertising is expected to overtake newspapers as the second largest ad medium by next year, reaching a value of $1.29bn ( £0.8bn) in 2016 powered by technological developments in ad servicing, targeting and measurement.
Out of home is set to become the second fastest growing medium after online over the next five years.
However, a revised forecast for print media now expects a slight decline in revenue rather than small positive growth.
Magnaglobal points out that that Europe’s major economies are “stumbling” but India and China are expected to remain “key drivers” of the global economy.
A report from PwC earlier this week says that the value of the UK ad market is set to grow 4.8% over the next four years.