Following several challenging years for commercial radio, 2007 gave rise to signs of a change of fortune for the sector. Commercial radio audience levels gradually increased and digital radio received a massive shot in the arm thanks to Channel 4's 4Radio initiative.
Two new wealthy companies in the shape of Global Radio and H Bauer entered the sector via the acquisitions of Chrysalis and Emap Radio.
Finally, 2008 will see a new set of leaders at the helm of radio. Familiar faces such as Ralph Bernard, Phil Riley and Tom Moloney have either departed or will do so soon.
After a year of such change, most radio players are agreed that in 2008 the biggest challenge will be digital. With a stack of new entrants coming in via the 4 Digital Group multiplex, it could be argued that digital is well set for the future.
Channel 4 as a television channel is renowned for its innovative, youth-orientated programming. And there is a feeling within the industry that if anyone can entice listeners to digital radio, it could be Channel 4.
Analogue issue
But not everyone agrees. Speaking at MediaTel Group's Future of Radio seminar in December, Ralph Bernard, former chief executive of GCap Media, said: "The idea that Channel 4 is going to revolutionise the radio advertising market doesn't sit very comfortably with me.
"If it is genuinely innovative with the platform and it's widely received, then that's terrific, but I would much rather Channel 4 was coming into analogue radio as well, because we have a long way to go with digital radio."
Without any sign from media regulator Ofcom that there will be an analogue switch-off in the foreseeable future, owners must continue to plough money into both systems. Licences for digital and analogue run to millions of pounds for each group, but none can afford to quit investment in either.
Not only is there no incentive for consumers to invest in the DAB radio, but car manufacturers are reluctant to fit new models with DAB sets as standard before there is any sign the format is here to stay.
But Scott Taunton, managing director of UTV Radio, believes that, if the industry can get audience numbers on a steady rise, digital success will follow.
"If we can drive listening, the other problems the industry faces at the moment start to go away," he says. "We need the chance to make cost savings, to invest in programming."
In order to capitalise on the listeners, should they arrive, media owners urgently need to up the ante on ads. At Media Week's Media 360 event last year, new GCap chief executive, Fru Hazlitt - London managing director at the time - called for a voting system that would allow listeners to veto poor ads.
John Hegarty, worldwide creative director of creative agency BBH, believes problems with the quality of radio ads still prevail.
"It's a difficult medium to really do outstanding creative work on, but the industry needs to be a lot more daring and understand how radio should be used," he says. "It needs people who can see a vision of what radio should be, so the medium can compete in the market."
Hegarty, who agrees that some creative agencies are still guilty of assigning radio ads to its weaker teams, believes the difference in the quality of content, rather than the presence of ads on commercial radio, is a key reason why listeners still flock to BBC Radio.
Improving the quality of ads and editorial content is one challenge. But does it follow that once content is improved, digital radio's prospects will brighten?
Problems remain
Consolidation was the buzzword of 2007, but despite two huge deals - the sale of Chrysalis and Emap Radio - the industry is now no closer to that happening.
According to the script, Global should have united its former Chrysalis stations with those of Emap Radio. But, instead, the uncertainty that Emap and its staff experienced for several months will now surely transfer to GCap, which will reflect on the industry as a whole.
The sector may be on the up compared to the past few years, but its problems are far from solved.
Over the next 12 months, the best that can be hoped for is that the momentum gathered of late continues and that radio's newest members join forces with their contemporaries to bring about the changes the industry needs in order to progress.
THE FUTURE OF RADIO
RALPH BERNARD, former chief executive of GCap Media
On digital radio: "We're damned if we do, damned if we don't. It's essential we have digital radio for the future of all radio, not just commercial radio, but when you have a situation where it's threatened by a flooding of capacity into the market, it's a dangerous thing"
On the future of radio: "Revenue prospects are sticky. It's very difficult to see your way through to a business that can be genuinely competitive in the next decade. We are at a critical point and consolidation is part of that"
PHIL RILEY, former chief executive of Chrysalis Radio
On consolidation: "If consolidation this last year has been GCap's purchase of Classic Gold from UBC Media, then we've not done very well. Bauer has not put a big spoke in the wheel of consolidation"
On costs: "Transmission costs used to be a mere incidental to running a station, but now the costs of transmission to a major radio group are huge because digital radio is more expensive, you're paying twice and you're encouraged to expand"
On internet radio: "Wireless broadband is a red herring - internet is not the saviour of radio"
SCOTT TAUNTON, managing director of UTV Radio
On platforms: "Broadcasters are being forced into backing every horse, which is not sustainable. At some point we'll have to make tough choices. You run the risk of leaving yourself off the winning horse, but we have enough muscle between us that we can support one medium"
HOWARD BAREHAM, investment director for radio at MindShare
On 4Radio: "Agencies welcome Channel 4. New stations provide new opportunities for advertisers that might not be involved in radio. It's a way in to talk to advertisers about radio digitally, but also to talk about analogue in the same conversation".