Marketers are expecting to slash budgets by 3% on average this year, with advertising and traditional media expected to be hit the most, according to a global survey by Forrester.

The survey of more than 100 marketing leaders reveals that only 40% of them think they will be able to hang on to their stated 2008 budget and about the same number foresee a budget cut as a result of an economic downturn.

Branding, ATL advertising and traditional media spending will be the hardest hit categories, which will directly affect ad agencies.

All of this bad news is good news for those in the technology end of the spectrum.

The report predicts large changes ahead for the advertising and media industries. To reduce the impact of these cuts agencies will accelerate the integration of new media, strengthen their digital marketing practices and invest in communities for market and consumer intelligence -- basically reverting to all things measurable so that CMOs can prove the effectiveness of their campaigns.

It will also drive the set-top box and ad-supported Video On Demand (VOD) market -- all in the effort to target ads more effectively.

A UK-targeted Kellogg's ad, created by Leo Burnett London, has been cleared of making light of the sexual abuse of young people.

The ad for a Nutri-Grain cereal bar was set in a doctor’s examination room, with a young man complaining of hunger pangs.

An older man, a baker posing as a doctor, hands the younger man a cereal bar and asked him to take his trousers off.

The Advertising Standards Authority (ASA), the UK regulating board for advertising, said 42 complaints were received from viewers who thought the ad was suggestive of sexual abuse, and was not suitable to be broadcast to children.

However, the ASA said that the ad was unlikely to cause serious or widespread offence. Leo Burnett said they'd replace the offensive line for future broadcasts of the ad.

Kudos to the kids at Leo Burnett for creating the controversy -- taking the ad standard practice of "sex sells" to a whole new level.