Airwaves to algorithms: How commercial radio found its second wind
Opinion
Twenty years ago, commercial broadcasters were advised to take a hard look at their business models. They did, and it’s now paying off, WPP Media’s analytics manager writes.
In 2006, the first-ever tweet was posted. Apple released the first portable MacBook. And the BBC held a dominant 55% listening share of the UK radio market.
It was so dominant that the then-BBC director general went on to say that commercial broadcasters should look at their own “business strategies”. Singling out Radio 3 and Radio 4 for special praise, he added: “[BBC radio] is a success story – I am not going to apologise for our success.” – Fair enough.
Fast forward 10 years to 2016. Stranger Things first premiered. Instagram introduced Stories. Pokémon Go has launched. And while the BBC was still holding a greater share of listening hours, commercial radio had taken the lead in reach.
A decade later, the UK radio landscape has dramatically evolved. While the BBC remains a hugely important part of the UK’s audio ecosystem, commercial radio has steadily increased its share of listening and first moved into the majority in Q2 2022.
The latest RAJAR results make that explicit: commercial radio continues to hold a majority listening share, now at 55.1%, up 1.5 percentage points quarter-on-quarter.
Several factors have driven this over the past 20 years, but my focus is on how commercial radio has fine-tuned its proposition for the age of personalisation.
Power of niche
Commercial radio players have done an exceptional job adapting to shifting consumer needs through brand diversification.
Global launched 12 stations in September 2024 (including Smooth 80s and Capital Anthems), which currently yield a 1.2% share of total listening hours. Meanwhile, Bauer’s four spin-off stations (featuring Greatest Hits Radio 70s and Hit Radio 90s), which launched in April last year, represented 0.7% of the market as of Q2 2026.
These percentages might sound modest. But they represent a clear strategic pivot amongst thriving networks. They recognise that in order to keep audiences within their ecosystems, they must slice and dice their portfolios to serve niche listening habits, rather than relying on existing stations alone.
Talent is key
Another driver of commercial radio’s appeal is its approach to talent and bringing on board those who will appeal to a younger audience.
Recruiting talent from beyond traditional commercial radio has proved shrewd. Take Niall Gray. A TikTok and Instagram personality known for videos parodying presenters, his comedic style and growing social following translated naturally to Capital’s Weekend Breakfast show.
Similarly, Hits Radio recognised Sam Thompson’s resonance among Made in Chelsea fans, bringing him onto Sunday Breakfast (pictured). His subsequent I’m a Celebrity… victory only reinforced his ability to connect with audiences beyond the shows that made him famous.
Crucially, this high-calibre talent is also driving activity across other channels. A clip of Sam Thompson being asked an awkward-yet-funny question about One Direction and a previous relationship was viewed more than six million times on TikTok, while also being shared over 100,000 times.
It’s not just that these individuals are popular on social media; it’s that they understand the ingredients for successful short-form content and lean into the medium.
The digital ecosystem and on-demand distribution remain major growth levers for commercial players. Dedicated apps such as Global Player and Bauer’s Rayo for smart speakers make listening seamless in homes and cars. Platforms like Global’s DAX and Bauer’s AudioXI have taken this even further, giving networks the technology to offer advertisers data-driven, targeted campaigns alongside traditional broad reach.
Although this piece focuses mainly on commercial radio rather than non-commercial players, I’d be remiss not to mention the growing competition from newer audio market entrants such as Spotify and YouTube, as well as podcasts.
Over a quarter of adults listen to podcasts weekly, and commercial audio networks have embraced this habit. Active acquisitions and investments into podcast owners such as The Fellas Studios or The Overlap signal continued strength in their intent.
Radio’s metrics matter for advertisers
Beyond audience growth, the commercial argument for audio has never been stronger. The ‘High Gain Audio’ analysis WPP Media carried out in collaboration with Radio Centre last year showed that both digital audio and broadcast radio deliver above-average media ROI – performing strongly at a short-term level, while also driving long-term brand profitability.
In an environment where every ad pound is scrutinised, and media budgets are under huge pressure, brands and advertisers should be listening.
The data suggests that they are. The Q1 2026 AA/WARC expenditure report highlighted that total radio ad spend rose by 4.2%, propelled by a 22.1% growth in digital radio.
The latest WPP Media This Year Next Year report estimates that revenue for traditional radio in 2026 will be just behind 2006 levels – a feat that should not be overlooked when comparing to other channels across the same period.
Twenty years ago, commercial broadcasters were advised to take a hard look at their business models. As an analyst, I can tell you that the data suggests they did, and it’s now paying off.
As other media channels face their own crossroads, commercial radio’s quiet ascension offers plenty of lessons.
Jakob Sanders is the analytics manager at WPP Media