THE AMOUNT of money spent by advertising agencies with member publications of the National Newspapers of Ireland (NNI) increased by more than 8 per cent last year.

A total of €367 million was spent on advertising in NNI newspapers in 2007, of which €207 million was spent by agencies.

"This level of increase - against a backdrop of general economic uncertainty - is proof positive that agencies understand newspapers and recognise the unique benefits of the medium," said Maeve Donovan, NNI chairwoman.

"Newspapers offer a cost-effective means of precisely targeting a clearly defined readership audience while other media have to take account of increasing audience fragmentation and thus reduced opportunities for targeting," said Ms Donovan.

The list of the top 20 agencies, ranked by spend in NNI newspapers for 2007, was also announced.

Aegis Media (incorporating Carat, Brindley Advertising and Vizeum) won the number one agency award with a spend of almost €50 million - an increase of €8 million.

The NNI highest percentage increase in spend award was won by TMP Worldwide which recorded a 34 per cent increase on the agency's previous year's spend.

Other agencies that recorded increases were Group M (11 per cent), OMD Ireland (22 per cent), Young Euro RSCG (30 per cent) and Pierce Media (25 per cent).

Overall advertising spend in NNI titles recorded a 1.3 per cent increase, reflecting general cut-backs in direct spend, particularly in the property sector.