Spending on advertising in national newspapers grew by 2 per cent to €280 million (£220 million) in 2001, according to the National Newspapers of Ireland (NNI).

Of the €280 million spent in the NNI's 11 member titles during the year, advertising agencies accounted for €157 million, with the remaining €123 million being generated from classified and small ads.

The first half of the year saw an increase in spend of 12 per cent which was seen as an unexpectedly strong growth given the foot and mouth crises.

The overall spend decreased by 7 per cent in the second half of the year, reflecting the advertising downturn resulting from the economic slowdown and the events of September 11th.

Commenting on the results, NNI chairman Mr Gavin O'Reilly said: "While 2001 was an unusually volatile year, it certainly did not turn out to be as bleak as many experts had predicted."

He said more than 2.4 million adults read an NNI newspaper every day with each of the titles delivering an unrivalled, captive and loyal audience.

Brindley Advertising topped the table as the biggest spending agency with €15.6 million. This is the first time that the agency has emerged as the top spender. In second place on the NNI league table was AIM/Carat with a spend of €12.6 million. Doherty Advertising with a spend of €11 million secured third position.

The award for the highest percentage increase in spending was won by BBC Advertising with an 89 per cent rise.

The agency achieved 13th position on the league table, a jump of 12 places.

Ireland On Sunday became a member of the NNI in January 2002 and was not included in the 2001 survey.