Global ad spend is expected to grow by 3% in 2013, a slight decline from the previously forecasted 3.7% while 2014 will see spending grow 4.5% – again slightly lower than the 5% predicted in March.

The company said that the revised forecast was down to a slower upturn in the global economy but all regions were expected to recover by 2014 including Western Europe where despite the market decline continuing in 2013 with a predicted 2.3% fall, ad spend will see a 1.4% growth the following year.

The UK will see the post-Olympics confidence continue with a year-on-year increase of 3.6% in 2013, rising to 5% in 2014.

According to Carat, digital spend will continue to outpace all other media with the highest year-on-year growth rate of 15.6% in 2013 more than 10% higher than any other media and is predicted to take one out of every five dollars from the advertising wallet in 2014.

Aegis Media and Dentsu Aegis Network CEO Jerry Buhlmann said: “Carat’s latest ad spend forecasts highlight the positive momentum and global growth for 2013, a year which has proven extremely challenging for some markets to maintain their 2012 ad spend levels, in light of the poor recovery of the global economy.”