The Advertising Association and Warc have downgraded forecasted growth for next year to 3.8%, from the 4.7% uplift predicted earlier this year.
The downgrade reflects the “deteriorating economic outlook and the impact of the Eurozone crisis on global corporate and consumer confidence”.
Including the impact of inflation, a marginal 0.7% rise is predicted for 2012.
ITV chief executive Adam Crozier last week echoed the report’s view that the impact of the Olympics would not be as great as expected.
Spend for 2011 will grow by 1.9%, the report says, unchanged from the last forecast. Accounting for inflation, a 2.9% dip is predicted.
Suzy Young, data editor at Warc, adds: “The London Olympics and the Euro 2012 football tournament should provide a boost to UK ad spend in the summer months, but there is a possibility that this could come at the expense of the first quarter.”