National newspaper advertising spend recovers, but still dips 5.9% to €254m

ADVERTISING spend in national newspaper titles made a dramatic recovery in the second half of last year but still fell 5.9% to €254 million for the year, figures released yesterday reveal.

Advertising spend fell by 12.3% in the first half 2002 in the 12 members titles of the National Newspapers of Ireland (NNI) but recovered significantly by year's end to see the decline fall to just 5.9% to €254m from a record 280.2 in 2001.

In a statement, the NNI said that having seen a contraction of 12.3% for the first half of 2002 against a record 2001 performance, advertising expenditure actually improved in the second half and was only down 5.9%, with the fourth quarter, in particular, only €2.4m behind the corresponding quarter in 2001.

Commenting on the results, NNI chairman Gavin O'Reilly, said: "Despite the lingering economic uncertainty, newspaper advertising showed a progressive and marked improvement at the end of 2002. Most notable was the stronger-than-expected spend from agency clients in the fourth quarter, which was only marginally behind 2001, proving, once again, the resiliency of press advertising." He said despite the tendency of competitive media to discount the press, 2002 has confirmed the press as the largest Irish advertising medium in terms of total revenue share. "In that, these results are testament to the inherent power of press, and signal global concerns notwithstanding a positive backdrop for 2003," he added.

The figures reveal that revenue from advertising agencies came to €141 million in 2002, with more than 25% of this bought in the seasonally strong fourth quarter, versus 23% the year prior. "Despite earlier and somewhat overly pessimistic forecasts for recruitment, classified and property in 2002 following its aggregate 11.2% decline in the first half, this direct advertising actually ended the year on a much firmer note, and was only 5.3% behind 2001," the NNI said.

Advertising agency AIM/Carat took number one position on the NNI Agency League Table with a spend of €15 million. AIM/Carat increased their spend on 2001 by a healthy €2.4 million, earning them the Highest Increase in Spend Award also. The agency took second place in 2001.

In second place on the NNI Agency League Table was the 2001 winner, Brindley Advertising, with a spend of 13.3 million. A spend of €10.1 million secured third position for Mindshare/O&M/DDFH&B. In fourth place was Doherty Advertising and the fifth position went to MCM Communications. The Highest Percentage Increase in spend was won by Initiative Media with a 76.5% increase.