The US advertising market will turn in another tepid performance next year in spite of the rapid growth of online advertising and an expected bonanza from the Olympics and the US elections, according to a forecast presented on Monday by Universal McCann.

The agency, a division of Interpublic Group, believes that US advertising spending will increase by just 3.7 per cent in 2008 to $294.4bn, trailing the growth of the broader economy and rates in the rest of the world.