In terms of overall U.S. ad spending, Merrill Lynch now expects it to grow 4.7 percent during 2006, down from 5.1 percent in its last forecast. The global ad market now is expected to rise only 4.3 percent vs. 4.9 percent in its last outlook.

[...] ML described the Internet as “the bright spot” within its downgraded overall advertising outlook. “A strong first half has helped buoy growth for this medium this year with acceleration in certain online formats such as branded and classifieds,” the Wall Street analysts report, noting that “the law of large Numbers” is starting to impact advertisers’ budget allocations towards the Internet.