Advertising is picking up, Trinity Mirror, owner of The Birmingham Post revealed yesterday.

It came as the company issued a trading update ahead of its close period - it will announce its preliminary results for the 52 weeks ending December 30 on February 28.

The group stated: "The advertising environment in 2007 improved on previous years. However, month on month volatility remains and we expect this to continue in 2008."

It said 2007 performance would be in line with expectations.

Group advertising revenues for the five months to November excluding disposals but including acquisitions on a like for like basis increased by 2.1 per cent year on year. This compared to a decline of 1.5 per cent for the first half resulting in an increase of 0.1 per cent for the 11 months to November.

Regionals division advertising revenues for the five month period increased by 0.6 per cent. This compared to decline of one per cent for the first half resulting in a decline of 0.3 per cent for the 11 months. By category for the five months saw display up 4.6 per cent, recruitment down one per cent, property ahead 2.8 per cent, motors adrift 13.8 per cent and other classified categories up 1.3 per cent.

Nationals division advertising revenues for the five months increased by 5.6 per cent. This compared to a fall of 2.3 per cent for the first half resulting in an increase of one per cent for the 11 months to November.

Group circulation revenues for the five months grew 0.7 per cent year on year maintaining the same rate of growth seen in the first half.

Within this, nationals papers were ahead 0.9 per cent and regionals increased 0.2 per cent. For the 11 months group circulation revenues saw a rise of 0.7 per cent.

Group digital revenues for the five months on an underlying basis surged 33.3 per cent with an increase of 27 per cent for the regionals division and 98.5 per cent for the nationals. For the 11 months to November group digital revenues jumped 28.7 per cent with an increase of 24.6 per cent for the first half.

Trinity Mirror recently raised a total of £263 million from the sale of the Racing Post and seven businesses in London and the South East.

It said it expects to have concluded discussions with the pensions regulator by the end of the year about the pension contribution requirements from its disposal windfall, which will determine how much of it is returned to shareholders.

Meanwhile ITV boss Michael Grade said the broadcaster made "measurable progress" in 2007 after better on-screen and advertising performances.

The company's executive chairman reported a two per cent lift in net advertising revenues for flagship station ITV1 during November and said there had also been an upturn in its audience share.

Mr Grade rejoined ITV at the start of this year with the aim of making it the UK's favourite source of free entertainment by 2012.

With late money still entering the market, ITV said estimates for ITV1's net advertising revenues (NAR) in December also continued to improve.

Across the second half of 2007, ITV said it expected NAR for ITV1 to be flat with the figure for all of ITV's channels showing a 3.5 per cent improvement.

In terms of ITV's viewing performance, the company's volume of commercial impacts - audience share - rose 3.1 per cent across all ITV channels.

The figure is important to ITV as its advertising rates are based on audience share, as part of the Contract Rights Renewal (CRR) system set up following its creation from the merger of Carlton and Granada.

Mr Grade wants the CRR regime reviewed because of its negative impact on creativity in programming.

He also announced plans in September to give ITV1 a "facelift", including through a new peak-time strategy for the 9pm slot as the channel looks to increase its share of "light viewers" and upmarket ABC1 viewers.

ITV will also make more programmes that will recoup money for the broadcaster through international sales.

Mr Grade said: "ITV has made measurable progress during the course of 2007. On-screen ITV1's performance has been much improved; we have assembled a formidable senior management team; and we've seen real growth in the whole television advertising market."