I briefly caught up with Charlene Li after hearing her speak at Forrester Research’s Marketing Forum 2008 in Los Angeles.

In this podcast, Charlene talks about getting the book written, and her and Josh’s goals of helping marketers understand the wild world of social media and engage with consumers in the groundswell.

Charlene also describes how marketing is evolving from highly controlled one-way messaging to a much less controlled process of creating relationships with consumers. In particular, she outlines how one of the best-known and most successful consumer tech brands, Apple, breaks the rules for engaging the groundswell, and the risks that other brands face if they follow Apple’s lead.

[tags]Forrester 2008 Marketing Forum, Forrester Research, Charlene Li, Groundswell, Apple[/tags]

We cover some of the history of Wizzard and how they have brought together some of the most popular podcast hosting companies such as Libsyn and SwitchPod, and built a podcast advertising network to go with it.

The show focuses on podcast based advertising and in particular we discuss the two advertising campaigns Wizzard is running for the US Navy.

The first of those ran on 20 podcasts with wide distribution and focused on recruitment. The current campaign is much more focused and is running on 7 podcasts. It focuses on recruiting medical personnel.

We get into some good detail about how the process works, what Wizzard does and what podcasters have to do to make it all work. We talk numbers and Chris tells us how different ads support different CPMs, depending upon their placement and whether they are audio or video. Videos commands the highest CPMs running $5-7 to $20-35 depending upon whether it’s a pre-roll or a mid-roll. Audio runs at lower CPMs that range from $3-5 to $15-25 depending upon placement.

Chris explains how the revenue share works. The advertising agencies get their 15% off the top and then Wizzard and the podcasters split the rest 50-50. Wizzard pays the sales force and covers the costs of setting up and running the campaign.

Wizzard published that they supported over one billion downloads last year from the over 8,500 podcasts that use their hosting services. Some have questioned how that could be, so we ask Chris to help us verify those numbers and to understand how 8,500 podcasts produce so many downloads. Chris explains how they count downloads and filter out the spiders and bots. He says that there are some blockbuster podcasts that do really high volumes and just as in other media forms there is a long tail of podcasters, so looking at mean based average per podcast just does not make sense. It’s the old 80-20 rule once again. Chris also clarifies that some recent problems with reporting to podcasters has nothing to do with how the count their download figure.

Chris ends the show by providing some tips for podcasters – The one to remember most is that if you think you want to advertise in your podcast someday, start tagging them now so that ad inserts are easy to do and you don’t have to go back and re-edit your catalog.

It’s good to see organizations like Wizzard taking up the flag and promoting podcasting. Wizzard along with a few others is taking the risk to build the platforms that we need to scale the downloadable media business. We wish them well on their mission to help marketers advertise on an iPod (or a Zune for you Zune fans.)

[tags]Wizzard Media, podcast advertising, podcast hosting, downloadable media[/tags]

In the past, I have used the descriptions in the Digital Podcast Forums, but I thought I would create a short video tutorial that explains how to get podcasts into your iTunes player, download multiple episodes and delete podcasts from iTunes.

If you just got your new iPod and want to get some podcasts into iTunes so you can listen to them on your computer or iPod this video is for you.

[tags]how to get podcasts into itunes, how to get podcasts on iPod[/tags]

Both Apple and Fox are officially quiet about the deal and the Financial Times says that it is likely the deal will be announced at Macworld on January 14th.

The deal goes beyond movie rentals in that Apple will also for the first time extend its FairPlay digital rights management system beyond its own products.

A digital file protected by FairPlay will be included in new Fox DVD releases, enabling film content to be transferred or “ripped” from the disc to a computer and video iPod. DVD content can already be moved to an iPod but this requires special software and is considered piracy by some studios.

[tags]Apple, Fox, video, iTunes, Fairplay, DRM, online video rental[/tags]

I think that people got lots of iPods, Zunes and the like for Christmas and went looking for content.

I also think that Christmas day has probably become the biggest day ever for the music industry thanks to iTunes cards. I know for sure that’s the case in my home as my daughter spent her $30 iTunes gift cards before noon and my son spent his by 4pm. That’s the first time either of them has bought music online and it didn’t take long.

No wonder Apple’s stock almost hit $200 per share.

[tags]ipod, Apple, iTunes, Zune, Microsoft[/tags]

[tags]tivo, zune, ipod, video, dvd, ipod movie downloads, zune movie downloads[/tags]

The world’s most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service. BusinessWeek has learned that Morris has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75% of the music sold in the U.S. Besides competing head-on with Apple Inc.’s (AAPL ) music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft’s Zune media player and Sony’s PlayStation and by working with the wireless carriers. The service, which is one of several initiatives the music majors are considering to help reverse sliding sales, will be called Total Music.

While I like the idea of a service that could compete effectively with iTunes and create a more compelling solution for the other device makers, it’s hard for me to see how they will get past the DOJ antitrust issues relating to companies who control 75% of the market joining together to offer a bundled product.

Even more problematic are the issues relating to the economics of the deal.

The big question is whether the makers of music players and phones can charge enough to cover the cost of baking in the subscription. Under one scenario industry insiders figure the cost per player would amount to about $90. They arrived at that number by assuming people hang on to a music player or phone for 18 months before upgrading. Eighteen times a $5 subscription fee equals $90.

Even if they can get past the DOJ anti-trust issues relating to Total Music, it does not seem to me that the economics of a bundled $90 subscription per player would work for either the device or recording industry. Adding $90 to the price of a player would surely depress player sales and probably still not be enough to cover the royalties required for a service that will let you play anything any time.

Is this idea destined for a pileup somewhere along the digital media highway?

Via Techmeme

[tags]Universal, UMG, TotalMusic, Total Music, iPod, iTunes[/tags]

iPhone is scheduled to go on sale on November 9 and will be sold in Germany through Telekom Shops of Deutsche Telekom and the T-Mobile web shop. iPhone requires a new 2-year T-Mobile tariff and will be available in an 8GB model for €399 including V.A.T. and will work with either a PC or Mac.

[tags]iphone, apple, t-mobile, tmobile[/tags]

Unique to the UK, iPhone users will have free access to the O2’s public Wi-Fi network, covering over 7,500 cafes, restaurants, airport lounges, pubs and other locations across the UK.

iPhone is scheduled to go on sale on November 9 and will be sold exclusively in the UK through Apple’s retail and online stores, O2 and The Carphone Warehouse’s retail and online stores. iPhone will be available in an 8GB model for £269 (inc VAT) and will work with either a PC or Mac. Three iPhone tariffs will be available from O2 starting at £35.

[tags]iPhone, iPhone UK, O2, Apple, mobile[/tags]

The biggest selling point for eMusic is also its biggest point of controversy: the site uses the MP3 format, which works on any digital player but lacks digital rights management technology, that protects copyrighted material from unlimited duplication.

This should provide some really interesting competition between iTunes, eMusic and Audible.

NOTE: Digital Podcast is an affiliate of eMusic and if you use the link above to purchase eMusic we will get some money sent our way.

Here’s the apology:

To all iPhone customers:

I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.

First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to ‘go for it’ this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone ‘tent’. We strongly believe the $399 price will help us do just that this holiday season.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you’ll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple’s website next week. Stay tuned.

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.

Steve Jobs
Apple CEO

As expected, Apple also announced a video Nano, a touch screen iPod similar to the iPhone without the phone, and build your own custom ringtones for the iPhone. Apple even inked a partnership with Starbucks that sounds like fun.

Jobs also announced that Apple’s iTunes podcast directory had hit a milestone of 125,000 podcasts. Jobs made the announcement as part of his introduction of the fall iPod line.
“This is amazing material,” said Jobs. “It’s free, and over 25k are video podcasts.” Go podcasting!

Having reviewed all that, forgive me if I don’t gush all over the place. I love my iPod and I like what Apple’s doing, but the news today just didn’t seem to have the impact that I have come to expect from Apple’s big announcements. The lead story picked up by big media is the price cut, and while that’s nice for consumers, it’s just a bit depressing if you ask me.

Apple Inc.’s iPhone outsold all smart phones in the United States during July, and equaled the sales of the most popular feature phone, according to iSuppli Corp. The iPhone accounted for 1.8 percent of all mobile-handset unit sales to U.S. consumers during July. Most iPhone purchasers in July were male, 35 years of age or younger and possessed a four-year college degree or more.

Strong early consumer uptake conforms with iSuppli’s forecast of 4.5 million iPhones shipping in 2007, rising to more than 30 million units in 2011.

…the two models of the iPhone now on the market outsold all smart phones in July, including the Blackberry series, the entire Palm portfolio, and any individual Motorola, Nokia, Samsung or other smart phone model from a branded service provider. The iPhone’s U.S. sales in July were equal to those of the most popular feature phone, LG’s Chocolate.

This means that popular shows like The Office, Heros, Saturday Night Live and other NBC shows will no longer be available via iTunes. Apple is likely to pull all the NBC shows off iTunes.

NBC, which plans it’s own online video site with News Corp, said that the dispute was caused by Apple’s unwillingness to let NBC package together shows with variable pricing.

It seems to me that Apple should be able to control it’s retail prices, not NBC. If NBC wants to raise it’s prices to iTunes that’s NBC’s business. The desire for NBC to control a stand alone retailers pricing is just wrong, and maybe illegal as well.

In a 1911,the Supreme Court concluded that under the Sherman Antitrust Act, it was illegal for a manufacturer and distributor to set a minimum retail price for its products. However in June, 2007, the Supreme Court made a new decision that price maintenance plans will be decided on an individual basis, and courts will consider whether a particular plan is likely to increase or decrease consumer welfare. So it’s not clear what NBC might be able to get away with regarding setting retail prices.

In any case, NBC should be building a strong distribution channel and without iTunes they have cut themselves out of a lot of the market. We will have to wait and see how it plays out.

AT&T reported that only 146,000 iPhone users signed up the first two days of it’s launch.

Apple will probably report iPhone sales later today when it announces it’s earnings.

UPDATE: Apple sold 270,000 iPhones in the first few days.

According the the Reuters report, Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel that he did not name and an application with the U.S Patent and Trademark office for his report dated July 8.

Apple filed a patent application document dated July 5 that refers to a multifunctional handheld device with a circular touch pad control, similar to the Nano’s scroll wheel.

“We believe that iPod Nano will be converted into a phone because it’s probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod Nano,” said Chang noting that the new phone could have “rather limited functionality.”

Because of the anticipated lower price, 2008 sales of 30 million to 40 million units “is achievable,” according to Chang.

This would be a much larger volume than is expected of the first iPhone, Apple has targeted sales of 10 million units in 2008, which would give it a 1 percent share of the global market and present a much bigger threat to long-established phone makers such as Nokia and Motorola.

The number of iPhones Apple had stockpiled at its 164 stores last Friday is still a closely held secret. But an unconfirmed report at the website waitingforphone, quoting an anonymous staffer in ATT Mobilty’s Commerce Group, suggests that AT&T (T) may have already fulfilled more than 1 million iPhone activations.

Macrumors, which reposted the 1 million figure, suggests that the July 4 holiday may have delayed restocking shipments.

Reuters reports 700,000 iPhone Sales

Analyst estimates for iPhone sales in its first weekend run as high as 700,000 units and investors are expecting that momentum to continue.

CNNMoney reports iPhone sales said to hit half-million

Opening weekend sales of iPhones may have reached 500,000, according to an analyst’s estimate, as Apple’s much anticipated product saw sales that lived up to and even exceeded its hype.

Rampant speculation by the press about iPhone sales without real guidance from Apple. You would think Apple would want to make sure the street had a sensible estimate of sales volume or it’s stock could be way out of whack.

iTunes still lags behind Best Buy and Walmart, but I bet that it’s only a matter of time before iTunes digital downloading blows by those two as well.

Apple announced the launch of iTunes Plus—DRM-free music tracks featuring high quality 256 kbps AAC encoding for $1.29 per song. iTunes Plus is launching with EMI’s digital catalog of recordings, including singles and albums from Coldplay, The Rolling Stones, Norah Jones, Frank Sinatra, Joss Stone, Pink Floyd, John Coltrane and more than a dozen of Paul McCartney’s classic albums available on iTunes for the first time.

iTunes will continue to offer its entire catalog, currently over five million songs, in the same versions as today—128 kbps AAC encoding with DRM—at the same price of 99 cents per song, alongside the higher quality iTunes Plus versions when available. In addition, iTunes customers can now easily upgrade their library of previously purchased EMI content to iTunes Plus tracks for just 30 cents a song and $3.00 for most albums.

I think it’s great that Apple is continuing to support podcasting, although I am disappointed in the design quality of the spotlight page – Apple can do better.