Spain, the fourth-largest economy in the region, is a big reason for Western Europe’s malaise. eMarketer estimates that a shrinking economy and restricted consumer spending led advertisers to pull back more than 5% in 2011, and expects a drop of 4.7% for 2012.

However, not all is total darkness for the country. eMarketer expects the worst of the decline to be relegated to the first half of 2012, as news of steadfast support of the euro currency union boosts the outlook for the economy. This presages a return to growth in Spain for ad spending in 2013, expected at 3.1%.

The rebound can’t come soon enough. The damage to the ad market in Spain is severe, set to drop nearly $1 billion from 2010 to 2012. As a result, eMarketer doesn’t forecast a return to 2010 levels until 2016, when total ad spending will reach $8.42 billion for the year.