Commercial Radio Hits A Quarter Of Century

The Commercial Radio Industry is to celebrate 25 years of broadcasting on 8 October 1998.

Since the launch of LBC, the first local commercial station, in 1973, the industry has grown to over 200 stations. It spawned what the industry refers to as the ‘Commercial Radio Generation’, which is those listeners who, over the past 25 years, have been brought up listening to commercial radio and are likely to continue to do so; 68% of all 15-24 year olds are now listening to commercial radio.

In its early years, commercial radio struggled. It was attracting advertising revenue that proved difficult, to meet very substantial costs, rather than winning listeners. A Green Paper was published by the Government in 1987 to remedy the situation, and the introduction of ‘frequency splitting’ – with stations offering separate programming on their AM and FM frequencies – led to a rejuvenation in the industry. Radio became the fastest growing medium, with revenue increasing by 85% between 1985-1989. The number of commercial radio stations also increased to nearly a 100 by 1990.

Advertising revenue has now reached £390 million, and is thriving (see Newsline).

Commercial radio has recently exceeded the BBC’s share of weekly adult listening hours, currently accounting for more than 51% of hours spent listening to the radio.

The dawn of digital technology introduces a whole range of opportunities for radio, creating the possibility for improved reception, transmission of additional data, and more efficient use of the radio spectrum for national services.

The industry’s growth looks set to continue, with the Radio Advertising Bureau predicting an additional 100 new services by the year 2002 and a continuing increase in audience. The creation of JICRIT also demonstrates a committment to commercial radio’s future. JICRIT will simplify the process of buying and selling airtime by providing electronic access to the information that is required. The system is currently being developed by MediaTel.

Radio Advertising Bureau: 0171 306 2500