Podcasts have become one of the most popular ways to consume content, offering everything from news and education to entertainment. According to a recent IAB study, podcasts will capture $2.6 billion in yearly ad budgets by 2026, much of that driven by niche content categories representing diverse audiences.
But while podcast audiences continue to grow, podcast monetization tech has lagged behind the wider programmatic ecosystem. Traditional online ads are easy to target because they use data from web browsers or apps, but podcasting doesn’t work the same way. This makes it difficult for advertisers to reach the right listeners, which means podcasters miss out on valuable ad dollars.
That’s where PODiQ, a new product from Consumable, comes in. PodIQ makes podcasts addressable, or easier for advertisers to target, using a technology called probabilistic identity graphs. Let’s break down what that means and how it can transform podcast advertising.
The Podcast Advertising Problem
To understand why PODiQ is so important, let’s first look at why podcast ads have been hard to target. In most digital advertising, companies use identifiers—such as cookies (small bits of data that track your activity on the web) or mobile advertising IDs (MAIDs)—to figure out who you are and what ads to show you.
However, podcasts use a different technology called RSS feeds, which don’t pass along these identifiers. Without these, advertisers can’t target specific listeners, meaning podcast ads are often generic and not as effective. This has limited the amount of money advertisers are willing to spend on podcasts.
How PODiQ Solves the Problem
PODiQ changes the game by making it possible to target podcast listeners in a way that’s similar to how advertisers target people on websites or apps. It uses something called a probabilistic identity graph, which at its core is a simple idea: we can look for patterns in data to figure out who is listening to a podcast, even without traditional identifiers like cookies.
Here’s how it works in three easy steps:
- Collecting Data: When you download a podcast episode at home, your device sends signals like your home internet IP address (the unique number that identifies your network) and information about the device you’re using. PODiQ collects these signals to start building a profile of who might be listening.
- Connecting the Dots: PODiQ uses this data, along with other clues, to connect your podcast activity with what you do online. For example, if you’re using your home WiFi to download a podcast and at the same time browsing the web on your phone, PodIQ can make an educated guess that you’re the same person. This process is called “probabilistic” because it uses probabilities, or educated guesses, to figure out who the listener is.
- Creating Targeted Ads: Once PODiQ has a good idea of who’s listening, it can group listeners into categories based on things like interests or demographics (age, gender, etc.). Advertisers can then use this information to serve more relevant ads to podcast listeners, just like they do on websites or apps.
Why People-Based Identification for Podcasting is a Big Deal
Now that you know how PODiQ works, let’s look at why it’s such a game-changer for both advertisers and podcasters.
Better Targeting for Advertisers
Before PODiQ, advertisers had to treat podcast listeners as a broad group, showing the same ads to everyone. This made podcast ads less effective because they weren’t reaching the right people. With PODiQ, advertisers can now target specific groups of podcast listeners based on their interests or behavior, just like they do on social media or websites. This means they can deliver ads to people who are more likely to be interested in their products, making their ad campaigns more effective and improving their return on investment (ROI).
More Revenue for Podcasters
PODiQ doesn’t just help advertisers—it also benefits podcasters by unlocking new revenue opportunities. By making podcast audiences more targetable, PODiQ attracts more advertisers who are willing to spend on podcast ads. This opens up a larger pool of advertising dollars for podcasters, helping them make more money from their content. The more relevant the ads are to listeners, the more valuable they are to advertisers, and the more podcasters can charge for ad space.
Easy Integration for Advertisers
One of the best things about PodIQ is that it doesn’t require advertisers or podcasters to set up new technology. It integrates seamlessly with existing advertising platforms, which means advertisers can buy podcast ad space using the same tools they already use for other types of digital ads. This makes it easy for brands to add podcasts to their marketing mix without any extra hassle.
A Forward-looking Solution
With the decline in the effectiveness of 3rd-party tracking cookies, probalistic models of identity have become a critical part of targeting strategies in the wider programmatic marketplace. According to eMarketer’s guide to identity resolution, a mix of deterministic and probabilistic data is necessary for an identity solution that addresses the full customer journey.
The Future of Podcast Advertising
PODiQ is not just solving a current problem—it’s also setting up the podcast industry for future success. As podcasts continue to grow in popularity, advertisers will be looking for better ways to reach these highly engaged audiences. PODiQ gives them the tools to do just that, making podcasts a more attractive option for brands and helping podcasters grow their revenue streams.
Edison Research has found that 84% of Americans aged 13 and above engage with ad-supported audio content daily. By offering a way to connect those daily listeners to the world of programmatic advertising, PODiQ opens the door for more sophisticated, targeted campaigns in the podcast space. And because it integrates with existing advertising platforms, it’s a scalable solution that can grow with the industry.
Quick Recap on PODiQ
PODiQ is a breakthrough solution for both advertisers and podcasters. By making it easier to target podcast listeners with relevant ads, PodIQ helps advertisers get more value from their campaigns, while podcasters can tap into new revenue opportunities. It’s a win-win that sets the stage for even more growth in the podcasting world.
As podcasts continue to become a go-to source for entertainment, education, and information, tools like PodIQ will be key in unlocking their full advertising potential. Whether you’re an advertiser looking to reach specific audiences or a podcaster trying to maximize your ad revenue, PODiQ offers a smart solution to make podcast advertising work for everyone.
