As it stands the broadcasting code allows listener competitions to be sponsored, but forbids the competition questions and structure to refer to the sponsor.
Ofcom's consumer research shows that listeners generally expect references to sponsors around competitions and believe that the change should be allowed.
The regulator has also suggested relaxing the rules governing the separation of radio editorial and advertising to allow stations to play promotional messages related to programming content.
This would allow stations to follow songs with short ads, dubbed "blipverts" to tell listeners about a third party website where they can download the track and how much it costs.
Ofcom is understood to be well disposed to make the changes to allow commercial radio to recoup lost revenues, noting that income from advertising, sponsorship and promotions fell 16% in real terms between 2003 and 2008.
It has now opened a consultation on its proposals and will take responses into account before publishing a revised broadcasting code in December.
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