Italy ad spend down 3.7 percent in July -Nielsen

MILAN, Sept 16 (Reuters) - Advertising spending in Italy fell 3.7 percent in July from a year ago, the latest figures from Nielsen Media Research show, but it rose 0.5 percent in the first seven months of the year to 5.239 billion euros.

Spending on television advertising rose 1.5 percent in the January to July period, Nielsen Media Research said in a note published on Tuesday.

Mediaset (MS.MI), the television broadcaster owned by the family of Prime Minister Silvio Berlusconi, relies heavily on advertising for revenues.

Advertising in newspapers fell 3.4 percent in the first seven months with national non-free newspapers seeing a 7.4 percent drop. Spending on advertising via Internet jumped 20.7 percent, however, to 186 million euros, as the pursuit for younger and wealthier customers continues.

The data from Nielsen Media Research showed that advertising for the telecommunications sector rose 4.9 percent in the first seven months with clothing advertising up 10.7 percent.

Those cutting back on advertising included insurers and banks, who have been hit hardest by global market turmoil. Spending in this sector fell 7.2 percent in the January to July period.

Car advertising was down 1.3 percent while drinks and alcohol sector advertisers cut spending 4.9 percent.

Mediaset shares were down 0.65 percent to 4.58 euros by 1055 GMT as Milan's index of leading shares .SPMIB fell 1.91 percent. (Reporting by Claudia Cristoferi; Writing by Jo Winterbottom; Editing by Quentin Bryar)