Ad spending forecast: Next year looks good

First quarter brought somewhat disappointing results for the U.S. ad economy, with minimal growth in spending as a number of large advertisers held back because of concerns about the country’s economic recovery.

But finally there is some good news on the horizon, albeit another year off.

After a slow 2013, next year will see very strong improvement, with advertisers increasingly optimistic about the direction of the country and Olympic ad sales gaining over the last Winter Games.

That’s according to a forecast released Friday morning by Magna Global, which predicts U.S. ad spending will rise 5.9 percent in 2014, up from an earlier prediction of 5.4 percent.

“The U.S. advertising market is accelerating gradually, following a weak first quarter,” notes the report.

The forecast for this year remains modest: 0.4 percent growth over last year, which saw a surge in Olympic and election spending. (With those two categories excluded from 2012 numbers, this year would be up 2.4 percent.)

This year’s weak ad outlook reflects the iffy outlook for the general economy.

While there have been some positive signs, such as the decline in the unemployment rate, rising consumer confidence and big gains in auto sales, there remain some major concerns.

The gross domestic product forecast was recently adjusted downward, and businesses are still worried that consumer spending will be weak.