The Republic's national newspapers expect a more positive year for advertising in 2003, despite global uncertainties and a serious drop in revenue in 2002.
The National Newspapers of Ireland (NNI) said that, while 2002 was a tough year, there were signs in the fourth quarter of a pick-up in advertising income.
NNI chairman Mr Gavin O'Reilly said the most notable trend was "the stronger-than-expected spend from agency clients in the fourth quarter, which was only marginally behind 2001, proving, once again, the resilience of press advertising".
More than €254 million was spent on the 12 NNI titles last year. The first half of the year was particularly difficult, with a 12.3 per cent decline on January-June 2001, but there was a partial recovery in the second six months, although revenues were still down 5.9 per cent year-on-year.
"Despite the lingering economic uncertainty, newspaper advertising showed a progressive and marked improvement at the end of 2002," said Mr O'Reilly.
Of the € 141 million spent by advertising agencies, more than 25 per cent was booked in the fourth quarter. There was a particularly strong shift into recruitment, classifieds and property in the second half of the year. Revenue in these areas was only 5.3 per cent down on 2001, said the NNI. The organisation pointed out that 2001 had been a record year.
The NNI announced that AIM/ Carat was the top spender, placing more than € 15 million of press advertisements in 2002. The agency was the second-highest spender in 2001.
AIM/Carat, which has grown considerably in recent years, increased its spending in 2002 by €2.4 million and yesterday the NNI presented it with a specially commissioned sculpture.
Irish-owned agency Brindleys, took second spot with a spend of €13.3 million.
In third position was Mindshare/DDFH&B/O&M which spent more than €10 million, while Doherty Advertising came fourth with an annual spend of €7.9 million.
Initiative Media recorded the highest percentage increase in spending, rising 76.5 per cent. This placed the agency in 12th position, a jump of nine places on 2001.
Mr O'Reilly thanked all the agencies and indicated that 2003 would be considerably better than last year.
"Despite the tendency of competitive media to discount, 2002 has confirmed press as the largest 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."
