Advertising revenue in the State's biggest newspapers slipped by 12 per cent in the first six months of the year compared with the same period last year, according to the latest figures released by the National Newspapers of Ireland (NNI).
However, revenues in the first half of the current year were €4 million higher than the preceeding six months.
The new NNI data reveal €133 million was spent advertising in the NNI's 12 newspaper titles in the six-month period ending June 30th, down from €151 million during the same period last year.
Revenues from advertising agencies accounted for €75 million of the spend, with the remaining €58 million coming from classifieds and other small ads. The first six months of last year, when €151 million was spent on advertising in newspapers, was a record.
The figure fell to €129 million in the second six months of the year before rising again to €133 million in the first six months of the current year.
NNI co-ordinating director Mr Frank Cullen said while the spend had fallen off from the highs seen in the second half of 2000 and first half of 2001 the latest figures "are not overly negative".
"The period we are comparing to was really a record of records," he said. "When you look at the figures you'll see we are even with the first six months in 2000 [when €134 million was spent] and I think most industries, in the year that's in it, would be happy to be even with 2000."
Mr Cullen said the newspapers had responded to falling advertising revenue by tightening spending.
He added July and August this year "have been quiet" in terms of advertising spending but that forward bookings into the autumn "looked better".
In the absence of "another September 11th" the final quarter of the year should be stronger than the same period last year.
"We have had to contend with the foot-and-mouth outbreak, with September 11th and also with a cooling off in the dotcom, high-tech sectors... I think the figures are simply reflective of what is happening in the Irish economy in general," he said.
"We have seen that the hype with the dotcom sector is now gone and spending is not as liberal as it was, but having said that it is coming back a bit but in a more controlled way than before."
Advertising in property had been mixed with more spending relating to new developments accompanied by a fall-off in advertising revenue in the second hand house market.
Recruitment advertising has held up despite slowing economic conditions. Mr Cullen cautioned against interpreting the current year's rising figures as the beginnings of an economic recovery. "It's all about marking time, everybody is waiting to see what it going to happen... but what we are saying is that we wouldn't be overly negative."
The 12 NNI titles are: The Irish Times, Irish Examiner, Irish Independent, The Star, Evening Echo, Evening Herald, Sunday Independent, Sunday World, Sunday Business Post, Sunday Tribune, Ireland on Sunday and Irish Farmers' Journal.
