Trinity Mirror, Britain's largest newspaper publisher, said advertising sales fell by 7.9 per cent in the five months to November.
It expects the "downward trend" in the media advertising market to continue next year.
In a pre-close trading statement ahead of its full-year results Trinity, which owns the national Mirror newspapers and about 240 local and regional titles including The Birmingham Post, said group advertising revenues fell by 3.8 per cent in the 11 months to November from the same period a year earlier.
The difficult economic environment and the shift to advertising jobs online has caused a slowdown in the advertising market hitting newspapers, television and radio companies across the board.
"The downward trend in the advertising market continues and there will be inflationary and other cost pressures in 2006, including higher news-print prices," Trinity Mirror said in a statement but added that it expected 2005 to be in line with expectations.
Advertising revenues for the company's regional newspaper division fell by 4.9 per cent in the five months to November. Within the division recruitment advertising was particularly weak with revenues down 20.5 per cent from the same period a year earlier.
"However, we saw continued growth in property advertising which was up by 6.4 per cent year-on-year," the company stated. "The period also benefited from strong advertising revenues resulting from the changes in the alcohol licensing laws."
Advertising revenues in the national press division fell by 14.4 per cent for the five months to November, while ad revenues for the Sports division and the Magazines and Exhibitions division fell by 11.2 per cent and 9.1 per cent respectively.
Group circulation revenue increased by 1.4 per cent during the same period and by 2.4 per cent for the 11 months to November.
Circulation revenue growth for the five months to November of 3.1 per cent for the regional newspaper titles, 4.1 per cent for Scottish nationals and 4.9 per cent for the Sports titles has been partially offset by declines of 0.3 per cent for the UK Nationals and 4.8 per cent for Magazines.
The circulation revenue performance reflected "the benefit of increased cover prices".
In response to the tough advertising market Trinity said it planned to deliver further cost savings of £15 million
in 2006, although it said it would report exceptional costs of about £12 million associated with these in its full-year results for this year.
"These savings are expected to partially mitigate the uncertain revenue outlook and cost increases anticipated in 2006," the company stated.
Charles Peacock, research analyst at Seymour Pierce, said the Trinity Mirror figures provided further evidence of the tough trading environment in UK newspapers. But he pointed out the 4.9 per cent decline in Trinity Mirror's regional advertising revenues was better than the 6.7 per cent reported by Johnston Press earlier this week.