The AA put the reduction down to disappointing growth in the UK economy in 2005, but expects adspend growth to accelerate to 4.4% in 2006 at current prices.
Its 2005 forecast sees growth for media such as: the internet, up 39.6%; outdoor, up 7.4%; cinema, up 4.9%; and television, up 2.9%.
It forecasts adspend shrinkage in: direct mail, down 3.3%; business magazines, down 2.5%; and radio, down 1.5%.
National newspapers will grow by only 0.7%, regional newspapers by 0.4% and consumer magazines by 1%.
Newspapers and magazines' share of classified advertising will fall by 0.8% but display advertising will grow by 0.9%.
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