However, these positive figures did not address the one serious issue that threatens its future - a decline in radio advertising.
With TV advertising currently being available at 80s rates, the forecast for UK radio advertising is bleak. Media buyer ZenithOptimedia forecasts that the radio industry will be worst hit of all advertising platforms, even in the event of an economic recovery in 2010. It has forecast a fall of at least 15% in 2009 and 9% in 2010. For television, it predicts a fall in 2010 of just 2%.
On a global scale, too, others are deserting the radio advertising space. After three years of struggling to make an impact in the radio ad business, Google is to exit its Google radio broadcasting arm, the system that enabled stations and advertisers to automate the process of buying and selling airtime. Google said it would concentrate on video and online streaming of audio instead.
Unless steps are taken to entice advertisers away from cheap TV options - and internet advertising continues to thrive - commercial radio will struggle. To survive, it must rebuild its image and show advertisers that it is a cheaper, more worthwhile option.
Since Bauer's acquisition of Emap and Global Radio's purchase of GCap, the independently owned commercial radio sector has fallen off the radar. Even Rajar's audience figures have lost the high media profile they once had.
However, there are positive signs for radio advertising, as long as firms make the most of regulatory opportunities and policymakers work quickly.
The government's commitment to a national switchover from analogue to DAB radio in 2015, as part of its ‘Digital Britain' report in June, may go some way toward rebuilding commercial radio's image in the minds of advertisers. The chance to broaden DAB's reach - with a recommendation that all new car radios be digital by the end of 2013 - will help; car manufacturers could hold the key to DAB's future mass market appeal.
Furthermore, new proposals by communications regulator Ofcom could win back advertisers, if marketed in the correct fashion.
One proposal is to allow radio companies to reduce their costs by sharing programming and office space between local stations, in return for an agreement to make the services available to DAB listeners.
Advertisers would also benefit with the creation of a one-stop shop approach. They could sponsor a programme that would be run across a number of local stations owned by various media companies. This would also appeal to bigger advertisers.
The most interesting proposal from Ofcom is to loosen the rules of owner-ship of different types of media within a local area. Currently, one company cannot own more than one type of media in a particular area. Were the rules to be relaxed, advertisers would be able to buy a local cross-media package from one media outlet. It would surely boost the profile and attraction of local advertising.
Some commercial radio owners may shudder at the prospect of entering the TV arena, but video coverage should be on their agenda. The suggestion by the Conservative Party that regional newspaper companies should produce local and regional television on ITV should extend to radio companies, too.
Commercial radio needs to grow and develop, not simply fight for survival.
Amanda Andrews is media editor at The Daily Telegraph, Sunday Telegraph and telegraph.co.uk
30 seconds on... digital radio
- In the Digital Britain report, published in June, the government announced that it wants all national, and most local radio stations, to stop broadcasting on analogue signals by the end of 2015.
- It promised to announce the switchover to digital two years in advance of the analogue signals being switched off, and said this was likely to happen in 2013, when it expects 50% of all radio listening to be attributed to digital stations.
- The report said a successful switchover to digital would rely on DAB reaching 90% of the UK population and all major roads.
- Another recommendation was that all car radios sold in the UK should be digital by the end of 2013.
- Currently, most British radio listeners still tune in via analogue sets, with digital accounting for only 20% of listening in the first three months of the year.
- To date, about 9m DAB receivers have been sold in the UK. After switchover, listeners without the receivers will be able to tune in to digital radio programmes via the internet, mobile phones and digital TV.