Merrill Lynch on Thursday upped its 2006 outlook for global online advertising spend, but slightly lowered its growth forecast for 2007.

Online advertising spend worldwide is forecast to reach $11.6 billion, an increase of 35 percent from 2005; previously, Merrill Lynch had predicted 33 percent growth, writes MediaPost. In 2007, online ad spend growth worldwide is projected to reach $14.5 billion, an increase of 24 percent. Merrill's prior estimate was for 25 percent growth in 2007 - but that was before it had upped its 2006 figures.

The highest growth rate this year is expected to come in China (50.0 percent), followed by the U.K. (46.4 percent), France (45.0 percent), Australia (42.6 percent), South Korea (30.5 percent) and Japan (30 percent).

Merrill is apparently bullish on aQuantive's (also Omincom's) prospects for international growth - as well as Google's (but not Yahoo's), particularly in fast-growing Western European markets (U.K., Germany, Italy).

Related 2006 stories:

- Merrill Lynch Reduces 2006 Ad Spend Forecast
- Coen Revises Online Advertising Spend Forecast Upward
- Merrill Lynch: Newspaper Ad Spending 'Depressing'
- Merrill Lynch Ups Online Ad Spend Forecast
- Merrill Lynch: Google's Rising Tide to Lift Online Advertising's Boat
- Merrill Upgrades '06 Ad Outlook for U.S.
- Merrill Lynch: Yahoo Growth to Slow a Bit
- Merrill Lynch: Only Internet to Have Real Ad Growth in 2006