Podcasts continue to grow while both commercial radio and digital streaming face revenue slowdowns, according to Ofcom’s latest Media Nations report.
It found that commercial radio revenue dropped slightly to £651 million in 2024, down from £667 million in 2023.
While national advertising rose slightly, local ad revenue declined further reflecting structural market changes, centralised programming, and advertiser preference for national inventory packaging.
Digital audio advertising flatlined at £175 million. Podcast advertising grew by 8% to £90 million, but this was well below the 23% growth seen in 2023.
Streaming audio ad revenue fell by 8%, down to £85 million. Despite the easing momentum, podcasts remain a strong area of investment, particularly among younger listeners.
Some podcast ad revenue is likely captured under digital video budgets, as many creators now produce video versions for platforms like YouTube and Spotify. Self-serve ad platforms, including AudioGo and Spotify Ad Studio, have made it easier for more advertisers to invest in podcasts.
Listeners aged 15-34 now spend over half their weekly listening time with streamed music and podcasts which is double the average across all adults. This continues to support podcast growth, even if at a slower pace.
Meanwhile, digital radio services expanded further. Global launched 12 new DAB+ brand extensions in September 2024, including Heart 00s and Classic FM Calm. Bauer added Greatest Hits Radio 60s, 70s, 80s and more, also moving KISS, Magic and Absolute to DAB+ in March 2025.
The BBC added Radio 1 Anthems and Radio 3 Unwind as new streams on BBC Sounds. In July 2025, Ofcom approved their launch on DAB+, but blocked plans for a Radio 2 stream and extended hours for BBC 5 Sports Extra, citing insufficient public value.
Boom Radio, which opposed the Radio 2 extension, launched its own spin-off Boom Light and ran a national marketing campaign.
Bauer and Global continued centralising their networks. Bauer rebranded 15 stations in England and Wales in 2024 under Hits Radio and networked its breakfast show nationally from July 2025. Global removed all regional programmes from Capital, Heart and Smooth in England from February 2025.
Small-scale DAB growth continued, with 74 multiplexes on air by June 2025. These support local and community services across the UK.
STV plans to launch a new Scotland-wide commercial music station later in 2025, targeting adults aged 35-54 and led by former Bauer exec Graham Bryce.
While traditional and digital revenues ease, podcasting remains a strong performer and key growth area in the UK audio sector.
You can read Ofcom’s annual Media Nations report here.
This story first appeared on radiotoday.co.uk