The World: Chicago - Analysts blame slump in adspend on diversification

Measured adspend in the US has suffered a first-quarter fall for the first time since the industry's upturn began five years ago.

Spending fell by 0.3 per cent during the period from January to March, according to TNS Media Intelligence. Industry analysts suggest budgets are not dropping, but gravitating to a broader array of marketing services.

For the past two years, US agency groups have been generating more from marketing services than advertising. They include Omnicom, which generated 57 per cent of its revenue from marketing services during the last quarter. John Wren, its chief executive, said this had given the group a significant advantage over its rivals.