The A$12 billion advertising industry in Australia will increase 1.7 percent in 2009. However, with a price inflation of 5.2 percent, spending will actually drop 3.5 percent, according to a new report by Aegis Media, The Australian reported.

Only the online sector will mark a real growth of 9.7 percent, but the figure is cut to 5.7 percent if price inflation is considered.

According to Aegis, this year seemed to have a poor start in some media. For example, insiders predicted television spending will decline by up to 10 percent in the first quarter year-over-year, The Australian reported.

Official audited television revenue figures this week are expected to show the market in tough situations for the six months to December, 2008 - down 3 percent, a study estimated.

"Without question, certainly the first quarter of this year will be a challenging time and our only option is go get out there and be as innovative as we can for clients," said Seven sales chief James Warburton in a statement Tuesday.

According to Tony Kendall, News Limited sales director, retail display advertising saved the print market in December and January, but "sales in the monthly magazine market were 'patchy' in February but picking up in March."

Aegis said Australia will be one of the only four markets in Asia Pacific to have even nominal growth this year, The Australian reported.