P.M. BRIEFING : Domestic Advertising Drop Seen

NEW YORK — Domestic advertising spending is expected to total $130.4 billion this year, off slightly from initial projections in the face of weakening local advertising budgets, a prominent forecaster said today.

Robert J. Coen, who heads the forecasting unit at the advertising agency McCann-Erickson, said in his semiannual report that domestic advertising will rise 5.3% this year, down from the 6.2% gain he estimated in December.

In newspapers, ad revenue was off 1.3% in the first quarter as a 2.7% gain in retail advertising was unable to offset a 6.4% decline in classified spending.

Local TV ad spending by car dealers slumped 21% in the first quarter, while bank and department store ad expenditures were off 14% and 13% respectively.