Global adspend is set to rise 3% next year driven by a jump of up to 4% in the US ad market, according to new projections from Merrill Lynch.

The investment bank polled seventeen US firms accounting for 55% of the nation’s total spend. Around 70% of this sample intend to raise ad budgets in 2003, while a mere 12% anticipate further retrenchment.

US companies in the household products and entertainment sectors are forecast to raise spend the most, with both in line for double-digit percentage increases. Auto firms will also increase ad budgets, but by a below-average 2% to 3%.

The projected spend for 2003 is a considerable step up from the current year, in which ad budgets are estimated to have risen a mere 0.7% in the US and to have dropped 1.1% worldwide.

Data sourced from: Media Week (UK); additional content by WARC staff