Worldwide advertising spending is expected to fall by 6.9% this year to $453bn (£304bn) this year.
The decline has been put down to the current economic problems, which it said had both hit corporate confidence and put consumers off making major buys.
newspapers are expected suffer most, with advertising revenues down 12%, as people turned to the internet.
The internet would be the only medium to attract higher advertising spending.
It’s predicted that television would boost its proportion of advertising budgets to 38.6% from 38.1%, but the total spent on TV advertising would fall by 5.5%.
It’s also predicted that spending on internet advertising is set to rise 8.6% as shoppers hunt online bargains.
Earlier this month online monitoring firm Hitwise found that visits to classified advertising websites were booming, with visits to such sites in the US up 84% on the same time last year.
Newspapers have been particularly hit by the downturn, from smaller titles in the UK to large papers in the US.
In February, Rupert Murdoch’s News Corporation announced a $6.4bn quarterly loss, as falling advertising revenues forced it to cut $8.4bn from the value of assets.