Zenith Optimedia also predicted that spending on internet advertising was set to rise 8.6% as shoppers hunt online bargains.

BBC: Bleak prediction for advertising

It said it remained interested in its options regarding Cordiant's media buying arm Zenith Optimedia in which it has a 75% stake.

BBC: Cordiant sale keeps City guessing

"UK Active Value made a proposal regarding Cordiant and Cordiant's shareholding in Zenith Optimedia Group, which Publicis declined, " Publicis said in a statement.

BBC: Cordiant sale keeps City guessing

The bulk of new advertising spending over the next three years is expected to be in emerging markets, particularly China and Brazil, according to Zenith Optimedia, a research firm.

WSJ: Brazil: The Social Media Capital of the Universe

"Since we released our last forecasts in December the global ad market has taken a substantial turn for the worse, " said Zenith Optimedia, whose own customers include British Airways, Hewlett Packard and Nestle.

BBC: Bleak prediction for advertising

"It was the backbone of the industry and it sank to an all-time low as writers wanted to express themselves on a bigger stage, " says Larry Novenstern, executive vice president and managing director of national and local TV investments at Optimedia.

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