Advertising revenue at national newspapers rose almost 17 per cent in the first three quarters of 2005, new figures show.

The figures from the National Newspapers of Ireland (NNI) were described as "very encouraging" by the group's chairman, Gavin O'Reilly, yesterday.

However, the organisation acknowledged that Irish editions of UK newspapers were not included in last year's figures. When these are stripped out of the 2005 figures, the increase in revenue year-on-year was 11 per cent.

Advertisers spent a total of €244.2 million in NNI titles between January and September 2005 - € 35 million more than in 2004 - with agency revenue up by more than 20 per cent this year alone.

"We're very encouraged by these figures, in particular with the significant rise in agency revenue," said Mr O'Reilly.

"This year, NNI made a strategic decision to refresh the way our industry communicates with agencies. In the first part of 2005, we hosted a very successful creative challenge for agencies, and more recently, we launched a brand-building initiative involving 23 advertising agencies and 23 small indigenous food companies," he remarked.

The NNI intends to monitor the effect certain advertisements have on public awareness.

"The exercise will prove the effectiveness of newspaper advertising, information that will be of huge benefit to agency planners and buyers," said Mr O'Reilly.

Agencies spent €127 million in NNI newspapers between January and September 2005, representing an increase of 20.9 per cent on last year's figures.

Non-agency or direct revenue, meanwhile, rose by 12.8 per cent to €117 million over the same period.