The UK commercial audio market is thriving like never before, capturing a growing audience and attracting increasing investment from advertisers. The industry is witnessing unprecedented growth, with connected devices reshaping listening habits and commercial broadcasters leading the charge. This article explores the rapid expansion of the commercial audio sector, the role of evolving technology, and the opportunities it presents for advertisers.
UK Commercial Audio Listening Reaches New Heights
The commercial audio sector has reached critical mass, engaging over three-quarters (76%) of UK adults every week. Over the past six years, the market has gained an additional 5.3 million weekly listeners, underscoring its growing popularity.
Source: The “Speed of Sound” report by MTM and Radiocentre
Not only is reach expanding, but audiences are also dedicating more time to commercial audio than ever. In 2024, the average UK adult spent around 15 hours per week immersed in commercial audio content, propelling total listening time to a record-breaking 627.5 million hours weekly.
Connected Devices Are Transforming Listening Habits
The rise of connected devices and brilliant speakers primarily drives the surge in commercial audio consumption. Nearly half (44%) of the UK adult population now listens to commercial-connected audio each week, making it easier than ever for audiences to engage with their favourite content.
Source: The “Speed of Sound” report by MTM and Radiocentre
Commercial broadcasters have successfully adapted to this shift by ensuring their content is easily accessible across multiple platforms. Leading brands such as Global Player and Bauer’s Rayo provide seamless access to live radio and podcast content, further solidifying commercial radio’s dominance in the UK audio market.
Commercial Broadcasters Lead the UK Audio Market
Despite increased competition from streaming services, broadcast radio remains the most widely accessed form of audio entertainment on connected devices, accounting for an impressive 71% of smart speaker listening. Commercial broadcasters continue outperforming other forms of commercial audio, offering easy-to-access, multi-platform content that captures most of the UK listening time.
Source: The “Speed of Sound” report by MTM and Radiocentre
This dominance extends to advertising revenue. Commercial broadcasters generate 86% of total UK audio ad revenue thanks to a mix of traditional radio advertising, brand partnerships, and monetized digital content, including live radio via IP and podcasts. The remaining 14% of revenue comes from independent podcast creators and ad-supported streaming platforms, some of which also partner with commercial broadcasters for ad sales.
Marketers Are Increasing Investment in Audio Advertising
As audience engagement grows, advertisers are taking notice. New data from Radiocentre, in collaboration with WARC and IAB, reveals that UK commercial audio advertising revenues grew by 5.5% year-on-year, reaching £863.4 million by Q3 2024.
Source: The “Speed of Sound” report by MTM and Radiocentre
This surge in investment reflects the increasing appeal of commercial audio as an advertising platform. With its unique ability to engage audiences in a personal and immersive manner, brands leverage commercial audio to enhance their marketing strategies.
Source: The “Speed of Sound” report by MTM and Radiocentre
Commercial broadcasters dominate UK audio ad revenue, holding an 86% share through broadcast radio, IP-delivered live radio, and podcasts on their platforms. The remaining 14% comes from pureplay digital providers, including ads in independent podcasts and ad-supported streaming services.
The Future of Audio Advertising is Multi-Platform
As commercial audio expands, advertisers are adapting their approach to harness the power of both traditional and digital audio advertising. By combining the broad reach of broadcast radio with the precise targeting capabilities of digital audio ads, brands are creating multi-platform campaigns that maximize audience engagement and contextual relevance.
Source: The “Speed of Sound” report by MTM and Radiocentre
Research from Adwanted’s July 2024 report, The Growing UK Audio Landscape, highlights this shift. The study found that 35% of linear radio campaigns now incorporate digital audio elements, up from 28% just four years ago. This growing integration of digital audio propels the industry forward, ensuring its continued success in an increasingly digital world.
A Booming Market with Endless Potential
With commercial audio listening at an all-time high, connected devices reshaping the landscape, and advertisers investing more than ever, the UK commercial audio market is poised for continued growth. Its unmatched ability to engage audiences across multiple platforms makes it a crucial component of any modern advertising strategy. As the industry evolves, advertisers embracing commercial audio’s power will be well-positioned to capitalize on its expanding potential.
Source: The “Speed of Sound” report by MTM and Radiocentre. Download the full version of the report here.
