Advertising in the national newspapers increased by 12.6 per cent in the first half of the year, new figures show.

The National Newspapers of Ireland (NNI) said the newspaper market had rebounded in line with global trends. The members of the NNI took in €143 million of advertising revenue in the first half of the year, compared with €123 million in the same period in 2003, a 12 per cent increase.

Some €72 million was placed by advertising agencies with the remainder from direct advertising. Direct advertising grew by 14.6 per cent during the first half of the year, while ad agency growth was 10.7 per cent.

Mr Gavin O'Reilly, NNI chairman, said the regeneration of the newspaper advertising industry was a reflection of an improved economy.

"What started as a ripple effect at the end of 2003 has now spiralled into a full-blown recovery as this is the third consecutive quarter of growth.

"Tighter budgets have understandably led advertisers to scrutinise the effectiveness of advertising across all mediums and... these results prove that confidence in newspaper and its ability to reach the greatest relevant audience remains steadfast."