Time to shed some light on the audio opportunity
Opinion
Although podcasts and streaming are a significant part of the audio offer, there has been little analysis on their true scale and the benefits for advertisers. Let’s change that.
Sometimes it’s easy to forget how lucky we are. In 2025, we have access to an unprecedented choice of high-quality media content, with much of this free at the point of use because of advertiser funding.
Audio is a great example of this, with listeners now able to tune in to a broader range of ad-funded radio stations, podcasts and streaming platforms than ever before. This explosion of choice has been fuelled by technology that’s made it simple to summon up our favourite station, presenter, music or discussion topic in an instant. All we need to do is press a button, flick a screen or ask Alexa.
This innovation has been great for audiences and offers significant opportunities for advertisers, especially as the commercial audio market is still growing. Ad-funded audio of some form now reaches 76% of us each week, while revenues are continuing to increase.
These headlines are great news for audio, yet it sometimes feels like we are generating more heat than light. For example, although podcasts and streaming are now a significant part of the total audio offer, there has been precious little analysis on the true scale of these platforms and the combined benefits they provide for advertisers.
Media disconnect
That’s why Radiocentre teamed up with MTM to prepare the Speed of Sound report, designed to shed some light on commercial audio in the UK, rather than rely on the understandable excitement, enthusiasm and heat that it has generated up until now. The report was launched at our Tuning In North event and might surprise some observers, but only because it relies on evidence rather than assumption.
As we know from previous studies, the ad industry has a tendency to over-emphasise the consumption of certain channels and neglect others based on their own media habits. So the fact that ad-funded podcasts account for only 11% of commercial audio listening and ad-funded streaming for only 5% may be difficult for some to reconcile. Especially as combined listening to ad-funded radio (broadcast and online) represents an 84% share.
This disconnect between perception and reality was one of the themes discussed with media agency leaders in Manchester following a presentation of the findings.
The truth is commercial broadcasters lead the way in ad-funded audio. New data provided in this report (following analysis of revenue data from Radiocentre, IAB and Warc) also found that ad revenues generated by broadcasters across radio, podcast and digital audio account for 86% of all audio advertising in the UK.
Beyond hype and speculation
Given this picture, it should be no surprise that the ambition of broadcasters is to grow the whole audio market. But in order to achieve this, we can’t rely on hype or speculative claims about what could happen at some point in the future.
We need a dose of reality and a hard look at the true scale of the audio opportunity, starting with an assessment of where we are now. The fact that audio represents around 20% of our time spent with media but accounts for only 5% of total ad budgets provides a sense of the opportunity, as well as the scale of the challenge in trying to close the gap.
This will require a renewed focus on the benefits that multiplatform audio can provide, highlighting not only what can be done, but also why advertisers should invest in audio.
To try to address this, Speed of Sound outlines the positive effects of using multiplatform audio for advertisers. This goes beyond the conventional wisdom of broadcast providing mass reach and digital audio providing targeting. In fact, this new analysis suggests that investing in both radio and digital audio can unlock significant benefits, with this combination delivering both long-term brand-building and short-term activation effects.
The good news for advertisers is that the cumulative benefits of using multiplatform audio are readily available, as commercial broadcasters can offer access to 90% of all ad-funded audio listening through a mix of their own radio platforms, alongside podcasts and music streaming.
Advertisers can also apply best-practice guidance outlined in the report and utilise different features direct from broadcasters and their platforms.
Looking ahead, it’s clear that commercial audio has huge potential, so tracking its progress will remain important. This will help provide better understanding, while enabling us to do even more to help advertisers navigate the opportunities.
Crucially, this emphasis on evidence will also mean we can highlight true scale and the positive effects of ad-funded audio, rather than relying quite so much on technical capability, personal habits and wishful thinking.
Matt Payton is CEO of Radiocentre