"Nanocasting" differs from early podcasting by beginning with a clear definition of the target audience, the business model, the revenue model and use of a system specifically developed for targeting commercial audiences called RTS (Really Targeted Syndication).

Today a company called Jackstreet Media launched five online radio pilot programs that have been developed using the Nanocasting business model,  a model for commercial podcasting based on established media and direct marketing principles. The pilots go beyond the advertising, sponsorship and subscription based thinking to use podcasting in very creative, customized, commercial applications designed to achieve specific measurable business goals.

Each of the programs began with a business plan and a path to profitability, mapped out before the podcast was developed. The pilot programs fall into three categories: podcast "based," podcast "dependent" and podcast "enhanced." The categories refer to the relationship of podcasting to the overall business model. Each of the nanocasted programs is at a different stage of development, and three have already achieved their initial business objectives.

"There is much, much, more to commercial podcasting than selling advertising, sponsorships or subscriptions. These business models are on the cutting edge of using podcasting commercially and are drawing from media fundamentals, marketing fundamentals and a decade of ecommerce experience" said Errol Smith, Emmy winning founder of Jackstreet Media.

Nanocasting is a market tested approach that blends podcasting, streaming and ecommerce technologies into a market tested system for using online radio commercially. "Until last week the term 'nano' had very little mindshare within the podcasting community, but when Steven Jobs introduced the term to the mainstream, he helped us pave the way for the introduction of a commercial podcasting model that is supported by both research and real world business cases," said Smith.

"Nanocasting refers to the programming produced for the most narrowly but clearly defined target audience. This is the audience that is most interested in the type of programming, and from a marketing standpoint, the audience that is most likely to buy related products," said Smith.

The five programs are podcasted, streamed, available through RSS subscription and nanocasted using RTS (Really Targeted Syndication).

"Internet radio is an emerging category. Every category will divide, and what you're seeing now with Nanocasting and podcasting, this is a division," said Jack Trout, co-founder of the concept of positioning. "This is a new thing that is being born in terms of delivering radio," said Trout.