The World: Los Angeles - US adspend fall points to economic slowdown

Adspend in the US in May showed a year-on-year drop for the first time since the ad recovery began in May 2002.

Expenditure on advertising declined by 0.3 per cent in May compared with the same month in 2005. While the drop is small, anaylsts are warning it is a pointer to a potential trend, as economic growth slows and worries about an oncoming recession grow.

Ad revenue was depressed by a dip in spend on network TV of 2.8 per cent and a drop in local newspapers of 9.1 per cent.

However, internet advertising rose by 18.6 per cent year on year in May, while revenue for Spanish-language TV networks jumped by 17 per cent.