Advertising revenue at national newspapers was up by almost 18 per cent during the first quarter of the year.

According to figures from the National Newspapers of Ireland (NNI) a record €82.2 million was spent on advertising in newspaper between Janaury and March of 2005, compared to €69.9 million the year before.

The NNI said newspapers were increasingly the preferred medium for advertisers seeking to promote their brands. The press sector remains the largest advertising medium in the Republic, significantly ahead of television and radio.

The amount of revenue spent by advertising agencies was up by nearly 23 per cent (to €44.5 million), while direct advertising revenue rose by 11.8 per cent (to €37.7 million) during the first quarter of 2005.

Direct advertising refers to people and companies which book space themselves, without the assistance of an advertising agencies.

Small ads are one of the most popular forms of direct advertising.

The chairman of the NNI, Gavin O'Reilly, commented: "The key factors behind the current growth include continued strong activity in the property and recruitment sectors, as well as a material resurgence in both brand and retail advertising."

Mr O'Reilly said the figures clearly demonstrated that advertisers and their agencies were responding very positively to publishers' investment in innovative new products, formats and enhanced colour and production technology.