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Archive for the ‘Paid Search Advertising (PPC)’ Category

Search Marketing for Online Retailers

Tuesday, July 31st, 2007

Alan Rimm-KaufmanWould you like to learn more about search marketing and how it can help your business? Alan Rimm-Kaufman, CEO of The Rimm-Kaufman Group, will be giving you powerful insight on how online retailers drive profitable sales to their websites, call centers, and stores using paid search and paid inclusion. Other topics that will be discussed are website usability, site conversion, and natural search engine optimization.

Listen to this weeks show on Online Marketing with RSS Ray 10am Pacific/1pm Eastern.

Interview with Search Industry Magazine Publisher Boris Mordkovich

Friday, June 29th, 2007

RSS Ray recently had the opportunity to ask search industry magazine publisher Boris Mordkovich some questions about how search marketing can work for locally-based businesses.

As founder and publisher of Search Marketing Standard , Boris has been directly involved in online marketing for several years. Through his publication’s work in providing quality search marketing articles, tips and interviews, Boris has put himself at the forefront of online marketing knowledge.
In addition to publishing Search Marketing Standard, Boris is co-founder and director of operations for MordComm, Inc . His company is responsible for several tools used by internet marketers regularly, including AdWatcher , a tool for tracking and managing ad campaigns, and Pay Per Click Universe , a popular information portal for search marketers.

-How did you get started in the field of search marketing?

My search marketing background started off, as for many people in the industry, by accident. A number of years ago, I was running a web hosting company when GoTo.com (later Overture, now Yahoo! Search Marketing) first launched. Although everybody was saying that their pay-per-click concept would never work, as people would not search paid listings, we decided to give them a shot and got terrific results for our hosting company.

Fast forward a few years, and I got so interested and involved in the search marketing industry that I eventually sold the hosting business and began developing a service to help advertisers track the performance of their search marketing ads and detect and prevent fraudulent activity. After a year of R&D, AdWatcher.com debuted.

Luckily, it has gone all uphill from there. In the next few years, I co-authored a print book on pay-per-click (PPC) advertising, our company launched another website for PPC advertisers at PayPerClickUniverse.com, as well as a bid management service at AdScientist.com. Our plan was to develop a suite of services and informational sites to help others get involved in search marketing.

All of that eventually led up to the magazine.

-What was the motivation behind starting your magazine?

In late 2005, I was approached by a colleague who was working as an SEM consultant for a print wedding magazine, and he proposed the idea of a print publication for the search marketing industry. Although our experience with print was minimal, I liked the idea of doing a print publication. Plus, no one else was targeting that space in such a fashion, so we saw potential and decided to give the idea a go. We hired him as the editor-in-chief, recruited a terrific designer and half a year later, the first issue came out.

In terms of motivation, there were a few different factors involved.

First of all, we realized that it would be very difficult to launch a regular website or a blog and compete with the hundreds of existing ones that cover the industry so well. In order for us to develop an audience, we had to do something unique and something that hasn’t been done before. Launching the magazine allowed us to gather an audience of over 50,000 readers in just a little over a year.

Second, from personal experience I know that many marketers and business owners struggle to keep on top of all the latest developments in the industry. The useful and practical tidbits of information that they could actually use to enhance their business are spread over hundreds of blogs and thousands of articles. We felt we could do a better job at covering emerging trends and offering well-researched and well-edited commentary and insights without overwhelming the reader.

And, if the feedback is any indicator, we have been able to do just that. And that’s the biggest motivation one can ask for.

-How is your magazine different from other information resources people have available to them about search marketing, especially more what some may consider more timely information delivered via blogs, podcasts, and RSS feeds?

I strongly feel that we are not competing directly against each other, but rather each resource tends to complement what the others offer.

Blogs are great because they offer instant information, news reporting, and various viewpoints. I personally subscribe to over a hundred blogs that I read on a daily basis to stay on top of the latest developments. We also have a blog on our website where several authors contribute on a daily basis.

I am also realistic enough to realize that blogs, podcasts, and RSS feeds have us beat in terms of delivering information instantly. However, with print, we are able to do something different.

With print, we are able to select a topic that we feel is practical and useful for our readers and spend the time and resources to research, write, and edit it to make it easy to understand and implement. We have top experts in the industry contribute to us on a regular basis to share their insights with our audience. And because they have a few months to research and write about the topic, and it goes through extensive editing, it turns out to be an excellent article truly worth reading.

Each issue contains solid articles with advice, strategies, and practical information that doesn’t get lost in press releases, news, and other content that’s not necessarily useful to the reader.

-Should local and regional businesses be advertising on search engines, or is that best left to national and international companies?

Local and regional businesses should most definitely advertise on search engines – more so now than ever before, as one huge trend in search is the move towards localized and personalized search. Consumers are moving away from traditional sources of local information, such as yellow pages and classifieds, and are accessing the same search engines they use for all kinds of different things to find local business listings. For example, according to a recent Nielsen/NetRatings study, 46% of the 2,866 surveyed reported using the web to find a local business within the previous 90 days.

-What kinds of local or regionalized businesses best benefit from geographically targeted paid search?

Anything and everything, really. Research indicates that people are increasingly investigating a potential purchase using online sources (seeking information on products, conducting competitive analyses, reading product reviews, etc.) to support a local purchase. Many products or services sought are almost inevitably local in nature – gardeners, home improvement sources, computer repair shops, hair stylists, etc. Even national or international franchise businesses, such as McDonalds or Burger King, offer products geared towards local consumption.

One key thing to remember, however, is that the major difference between local and general search engine marketing is that the goal of local is not just to bring people to your website, but rather get them to your actual front door where you can convert them into customers.

-Do people search using city names or zip codes for most of the information they are shopping for?

That is quite common. Increasingly, however, search engines try to guess the user’s location either based on their IP or on their profile information. For example, Google markets a free account you can use to easily access all of their services. Once you create that account profile, they use your geographic location to serve you local ads with Google search results.

Another approach that search engines are currently working on is using your search history to figure out your location. Here, if you typically search for things in Brooklyn, New York, the next time you search for something more general (such as an “attorney”), the search engine will try to provide you with results from the Brooklyn area.

-Is there any way I can determine the amount of search activity on Google within a local market for defined search terms prior to actually running a paid search campaign?

Tough question. It is definitely possible to search for keywords that contain your location on Google or Yahoo!, but it wouldn’t necessarily show the total search volume. Keep in mind that in addition to people searching for “x” service in “New York”, there are a lot of searchers who don’t input the actual location into their query, and the search engine simply uses its own data to determine it.

Furthermore, local search is not even entirely all about “searching” in the traditional way. For example, Google offers an option to create a local business ad that will be displayed when someone uses Google Maps to view your neighborhood. They also allow businesses to offer a discount coupon that the visitor can simply print out and redeem at your location.

Yahoo!, on the other hand, offers local listings for a flat fee. There is no bidding or keywords involved. Rather, they determine the fee based on your business category and the location. For many, this offers a simplified way of managing their local listings without the upkeep of managing traditional PPC-type listings.

All in all, you’ll find that there is a lot of merging of information, so that local ads are being displayed all over the place – regular results, maps, etc. This makes it pretty difficult to determine the potential volume without actually launching a campaign.

-Google only shows the number of impressions that were used within a given month for a search term. Is there any way to know the total number of impressions that resulted in someone clicking on an ad, including ads of other advertisers?

Unfortunately, no. Advertisers put a lot of effort into testing, optimizing, and improving their ads. And while they reap the rewards, they probably would not appreciate having all of their conversion data public for their competitors to see. After all, they are the ones that have spent the time and effort in coming up with that perfect ad.

However, do keep in mind that Google can estimate the amount of clicks you will receive from a certain keyword based on the keyword volume, your cost per click, competition, and so on. And that can provide you with quite a bit of insight into the campaign even before you launch it.

-What are some of the bigger mistakes you see local businesses making in their search marketing programs and how can they best be avoided?

The biggest mistake that we see is the “set it and forget it” type of thinking. Small, local businesses are usually so busy with other tasks that they simply set up the ads and just leave them on auto-pilot expecting them to convert. However, as with most things, that’s not enough. When a local business sets up the campaign, they need to do the following:

– Research all of the popular local advertising options, such as Google, Yahoo!, Local.com,
SuperPages.com, etc.
– Research all of the options each has to offer. The Google coupon system may not be their
most advertised feature, but it is a very effective tool that can influence a visitor to select you
over a competitor.
– Figure out whether your target audience lives exclusively in your area or could be visiting
from other areas. A restaurant or a night club might attract out-of-town visitors, while an
attorney or a car repair shop usually attracts locals, except for that emergency lawsuit or
brake failure.
– Spend time to research your keywords, develop your ads, and take advantage of all the
options a search engine has to offer.
– Develop a custom landing page for visitors. Remember that a visitor searching for local
information is interested in different things than someone searching for something to buy
online. The landing page should reflect that.
– Track and improve your performance. With the proliferation of affordable and effective ad
tracking services out there (shameless plug for our AdWatcher.com), there is no excuse not
to track the performance of your ads. And when you track, make sure to experiment with
new ads and new landing pages and always try to improve your conversion rates.

-What are some of the upcoming stories you are working on for the magazine?

It’s kind of ironic that you ask that because our next issue, Winter ’07, is actually focusing on the opposite of local search – international markets. The idea came from noting that a lot of advertisers are interested in expanding into markets outside of the United States, but aren’t really sure where to start.

Unfortunately, simply translating your website into another language such as French or Japanese is often not enough, because the search industry varies significantly in other countries. Google doesn’t dominate the market everywhere and, even where it is popular, there is a lot more to success in international markets than simply changing your ad account so your ads show up in search engines based in other countries.

For the upcoming issue, we recruited a number of local specialists from the UK, China, Russia, and Italy to give us an overview of the search advertising market in their own country and offer advice and resources for our readers on how to go after this market most effectively.

But that’s just the cover story. We will have a ton of strategies, trends, and advice for those businesses and marketers that simply want to improve their existing campaigns, as well.

-How can people subscribe to the magazine?

I’m very glad you asked. Typically, a subscription costs $15 per year, but we would like to give your readers a special deal – a one-year subscription to our magazine at no charge. Simply go to http://www.searchmarketingstandard.com/free-subscription.html to sign up today.

The Importance of Persistence in Marketing

Tuesday, June 5th, 2007

In today’s instant gratification society, many marketers are too quick to abandon strategies and tactics because they are not producing immediate results.

Business owners and CEO’s also expect this quick return, which may be a reflection of the average tenure of a CMO at a Fortune 500 company dipping to a precariously disturbing 19 months.

Many business owners have unrealistic expectations of marketing, especially online marketing.

My message this week is to remember the history of Coca-Cola, one of the world’s strongest brands. This is a prime example of the importance of persistence in marketing.

Did you know that Coca-Cola only sold 25 bottles in its first year? It’s whopping $50 in first year’s revenues was outstripped by advertising and supply costs for the year of $70.

Yup, this sugar water start- up lost $20 bucks in its first year, a sizeable sum in 1885.

What’s the point?

Stick with your strategy and tactics and allow them time to work. Constant switching of people, plans, channels and methods in many instances is counterproductive. Give your plan time to work.

Remember the guy that invented Preparation G? Neither do I. But the person that stuck with it and invented Preparation H became a millionaire.

Don’t give up too soon.

The ROI on PPC vs. Affiliate Marketing with MEC Labs

Wednesday, January 17th, 2007

As part of MEC Labs, today’s guest Aaron Rosenthal contributes heavily to some of the most important studies in online marketing. Below is one such study published by MEC Labs.

Which gives the best return on your investment – Pay per Click advertising, or building strong affiliate partnerships?

We recently released the audio recording of our clinic on this topic. You can listen to a recording of this clinic here:
The ROI on PPC vs. Affiliate Marketing

Building and maintaining strong PPC campaigns is becoming increasingly difficult in what has become a very competitive marketplace.

At the same time, many companies report poor performance with their affiliate programs.

The question we asked ourselves is this:

If companies invest sufficient time and effort to develop strong affiliate programs, can affiliates deliver a better ROI than PPC advertising?

Working with two of our research partners we have identified some important trends, and have confirmed that a well-managed affiliate program can deliver significant revenues.

Please note that the purpose of this brief is not to encourage marketers to abandon their PPC advertising in favor of affiliate marketing.

Instead we are suggesting that a strong affiliate program can deliver additional revenues with a very favorable ROI. Also, with skilled affiliates working on your behalf, and with some of them using PPC advertising themselves, you can extend the reach of your total PPC exposure, and reduce your PPC costs.

That is to say, many affiliates will be running their own PPC campaigns to attract the same traffic you have been fighting for yourself. They will then refer the most qualified of those visitors to your site, in the hope of achieving a sale and earning a commission.

Findings

Case Study 1 – Tracking the relative ROI between the PPC and affiliate programs of National Alert Registry.

One of our research partners is the National Alert Registry.

While we have been handling their PPC campaigns only for about a year, we have seen a decline in ROI, in spite of making substantial efforts in a number of areas:

* We have added a number of new campaigns over time, often in response to current news in the media.
* We have more than doubled the number of keywords we are bidding on, searching the “edges” for low-cost words and tracking their conversion rates.
* We have more than doubled the amount of traffic to the site generated through PPC.

However, in spite of this, over the last nine months we have seen our partner’s PPC cost per sale going up, and PPC profits going down.

NAR is not the only company or organization to have found itself unable to scale its PPC programs any further.

Over the same period, NAR has more than made up for the decline in PPC revenue and profits by working hard on its affiliate program.

This increase has been achieved by focusing very tightly not on recruiting thousands of new affiliates, but by identifying a small handful of super-affiliates, or strategic partners.

Here are the results:
NAR – PPC vs. Affiliate Comparison Oct ‘05 & June ‘06

October, 2005 June, 2006
PPC Sales 4,427 3,667
PPC CPA $6.71 $9.43
PPC Profit $14,564.83 $2,099.65
Affiliate Sales 983 4,501
Affiliate CPA $4.00 $5.00
Affiliate Profit $5,898.00 $22,505.00

What You Need To UNDERSTAND: Monthly profits from affiliate revenues have increased by 281.57% over a period of just nine months.

Case Study 2 – Growth in affiliate revenues for Net Detective.

Another of our research partners, NetDetective.com, has been working with an affiliate program for several years now.

While they don’t invest a significant amount in PPC campaigns, they do pay a great deal of attention to their affiliates.

In fact, the Net Detective affiliate program has now been running for over nine years, which makes it one of the longest running programs of its kind on the web.

By building and refining the program over such a long period of time, they are now in a position where almost 80% of the company’s total revenues are generated through their affiliate partners.

The growth in both affiliate income and profits has been steady over the years.

However, the most significant increase has been over the last year, during which time they have recruited a number of new super-affiliates.

As with the National Alert Registry, time invested in forging strategic partnerships with key affiliates has been shown to dramatically increase revenues.

Here are their results, also over the last nine months. The figures show payouts and profits per affiliate, per month.

ND – Affiliate Growth between Oct ‘05 & June ‘06
October, 2005 June, 2006
Average Payout per Affiliate $701.35 $2,315.99
Average Revenue per Affiliate $2,686.87 $6,731.93
Average Profit per Affiliate $1,985.52 $4,415.94

What You Need To UNDERSTAND: The average profit per affiliate per month has increased by over 122.41% over a period of nine months.

Finding Good Affiliates – The key to a successful affiliate program

The growth of both the National Alert Registry and the Net Detective affiliate programs was due to their recruitment of super-affiliates.

One approach to take when searching for top affiliates is to look for good content-driven sites. Many top affiliates have websites that are content-centered, instead of ad-centered. These affiliates will attract traffic and qualify it through their website and content before sending it on to you.

In the beginning, some of these site owners may be skeptical about becoming an affiliate. They may fear alienating some of their visitors, or may be suspicious of the payout terms or their ability to make a profit.

One way to approach these kinds of owners is to buy advertising on their site. If the results are positive for you, approach them about becoming an affiliate and be candid about your stats. You want them to know exactly what they are signing up for.

The objective is to partner with happy affiliates. Someone who is satisfied with the program and your company is going to send you much more traffic, and put more thought into their own campaigns, than someone who feels they have been misled.

Guidelines – Guidelines for establishing and running a successful affiliate program.

Pay per Click campaigns can still be a strong channel for many online marketers. As with any channel, the higher the level of your expertise in this area, the better your results will be.

If you plan to implement or improve an affiliate program to increase the overall ROI of your marketing efforts, keep in mind that many affiliate programs fail. And they fail because companies do not invest enough time and resources in research and program management.

Consider the following guidelines.

1. Commit to allocating sufficient resources to fully research and explore the best way in which to manage your affiliate program, whether you use an in-house affiliate management solution, or partner with an outside supplier like Commission Junction or LinkShare.

2. If you are going to use an in-house solution, invest in a program or service from an established provider. While some companies have done well with solutions they have built and programmed themselves, this takes an enormous investment of time and money and fails to leverage the expertise and experience of other companies.

3. When launching an affiliate program, give yourself a 12-month breakeven horizon. It takes time to build a reputation for having a good program, and to recruit good affiliates.

4. While some affiliate programs make huge revenues by having tens of thousands of affiliates, others achieve the same results with just a few strong partners.

5. Treat your top affiliates as valued strategic partners. Your top few affiliates may have the potential to provide you with a significant proportion of your total revenues.

6. Get to know how each super-affiliate operates. Some will feature your company within an existing, high-traffic content site. Others will create new sites, specifically to sell your products or service.

7. Be generous with your commissions. Top affiliates make their living as affiliate marketers and invest their resources only in programs which offer generous terms and are well managed.

8. Be prepared to increase commission rates for your top performing affiliates.

9. Provide affiliates with the marketing tools they need in order to effectively promote your products or services. These may include text links, banners, content pages, data feeds and even complete stores delivered by javascript.

10. Give affiliates access to detailed reporting on their performance and sales. Top affiliates will want to track the ROI of links from their pages…from exposures, to clicks and through to sales.

11. Be open to special requests from key affiliates. Some may ask you to place custom code on your sales confirmation pages in order to track their own marketing efforts, including PPC campaigns.

12. Listen carefully to top affiliates when they critique your landing pages. Many professional affiliates will have deep expertise in what works and what doesn’t.

13. Be available to top affiliates by email and phone. You should treat your top performers as important strategic marketing partners. Being available to them helps build that kind of relationship.

14. Appoint a single individual to work with top affiliates, so they know who their contact person is within your company.

15. Enable affiliates to link to any interior page on your site. Conversions will be low if you simply attract affiliate traffic to your home page.

16. Work with your top affiliates, learn from them and build custom landing pages to help maximize conversion rates.

17. Alert your affiliates to upcoming specials, deals and new product or service introductions, so they have time to prepare their own pages or links.

18. While some companies forbid their affiliates to bid on the company’s “own” keywords, this practice is not recommended. eBay, Amazon and other major sites freely allow this practice, as they understand and have calculated that giving their affiliates free reign is to their advantage. A common exception is that most companies will not allow you to bid on their trademarked names and phrases.

Pay-Per-Click Advertising with MEC Labs

Monday, January 15th, 2007

Aaron Rosenthal

Does increasing traffic by 446% and reducing cost-per-click charges by 58% in just 60 days with a Google AdWords campaign sound too good to be true? It’s not if you’re Aaron Rosenthal, Senior Analyst and Director of Channels for MEC Labs.

Aaron conducts ongoing search research with a group of 14 companies and optimizes a quarterly research search budget of over $340,000. Aaron is on the forefront of natural search engine optimization research and is constantly experimenting with Yahoo, Google and MSN’s search engines.

Join Aaron on Online Marketing with RSS Ray this Wednesday at 1 pm Eastern, 10 am Pacific as he gives RSS Ray a crash course in perfecting a Google AdWords campaign.

AdWords Updates from Perry Marshall

Thursday, January 11th, 2007

I am off to catch an airplane but wanted to give you some of the website addresses for the resources discussed by Perry Marshall on the program yesterday.

The AdWords training class information Perry spoke of can be found at BobsledRun.com (http://www.bobsledrun.com)

The bid price research tool, and popularity, Perry spoke of can be found at Skycastles.com/search (http://www.skycastles.com/search)

Perry’s website is at PerryMarshall.com (http://www.perrymarshall.com)

Happy Selling!

Google AdWords with Perry Marshall

Tuesday, January 9th, 2007

Perry Marshall

Google AdWords has become the gold standard for advertising on the internet, providing anyone with a website the ability to inexpensively promote their company to over 100 million people! However, as anyone will tell you, Google AdWords can be an expensive and treacherous place if you’re not careful.

Perry Marshall has made his entire career and developed a large following because of his ability to navigate the pitfalls of Google AdWords and deliver fantastic results to those who are willing to work at it. Perry Marshall has taught his strategies to marketers all over the world, and this Wednesday he will be appearing on Online Marketing with RSS Ray to discuss some of his strategies for fantastically boosting results with Google AdWords. Join us at 10 AM Pacific to learn from this highly respected industry leader.

Blog Advertising with Blogads Founder Henry Copeland

Tuesday, September 5th, 2006

Henry Copeland

Today’s blogging world is about more then just content, it’s also about advertising. Blogads is at the forefront of blog advertising, representing over 1,100 blogs and boasting such well known clients as NBC, Paramount Pictures, The Republican National Committee and VH1.

RSS Ray was pleased to host Blogads founder and CEO Henry Copeland for an exclusive interview on last week’s show to discuss blog advertising. From creating Blogads and its parent company Pressflex, to giving speeches on blog advertising throughout the country, Henry has established himself as a preeminent source of information for blog advertising and his interview on Online Marketing with RSS Ray was no exception. “The wealth of knowledge which Henry provided was exceptional” claimed one loyal listener.

To listen to RSS Ray’s interview with Henry, click here to download the podcasts now.

Yahoo! Scott Gatz Interview Summary

Thursday, February 16th, 2006

Scott Gatz from Yahoo! appeared on the program yesterday and had many interesting things to share with marketers of all shapes and sizes. You can download a copy of the interview in its entirety by clicking here.

Scott explains to marketers the advantages of using RSS in their marketing mix and how Yahoo! helps marketers use RSS for strategic advantage.

Scott goes on to elaborate on RSS results with marketers, citing examples of several clients (Ralston Purina and others) that have had success with RSS.

Of special interest to all is Scott’s thoughts concerning Yahoo’s future availability of RSS publishing and analytic tools for marketers and contextual based advertising associated with RSS feeds. Check it our and leave your comments!

Yahoo’s Guide to help RSS publishers is available here.

Mike Moran (IBM)-Improve Search Engine Rankings with Blogs, Podcasts and RSS

Thursday, January 5th, 2006

Increase your search engine rankings by using blogs, podcasts and RSS. Listen as IBM’s Mike Moran tells you how.

Mike is an IBM Distinguished Engineer and the Manager of Site Architecture for ibm.com, IBM’s customer-facing Web site. Mike is an expert in search marketing, search technology, publishing, Web personalization, and Web metrics, who regularly makes speaking appearances.

Mike has worked at ibm.com since 1998, pioneering IBM’s successful search marketing program. IBM’s Web site of over two million pages was a classic “big company” Web site that has traditionally been difficult to optimize for search marketing. Mike, working with Bill Hunt of Global Strategies International, developed a strategy for search engine marketing that works for any business, large or small. Moran and Hunt spearheaded IBM’s content improvement that has resulted in dramatic gains in traffic from Google and other Internet portals. Their IBM Press book Search Engine Marketing, Inc., shows any business the steps to search marketing success. Both Search Engine Optimization (SEO) and paid search techniques are explained.

Mike has managed numerous projects at ibm.com, including continual upgrades to the ibm.com search engine. Mike is an expert in search technologies, developing technology at IBM Research, Lotus, and other IBM groups over the years. He led the product team that developed the first commercial linguistic search engine in 1989 and has been granted four patents with two more pending. Mike developed the business model for search technology at ibm.com, justifying investment with the increased revenue from more customers finding what they are looking for. Mike introduced automatic categorization technology in 2001 and multifaceted search technology, beginning with the Server Finder, in 2003.

In addition to Mike’s technical career, he is the co-author of the Life Planners newsletter, a free monthly e-mail that helps parents of disabled children to develop a Life Plan, or Letter of Intent, for their child’s care when they are no longer able to provide care. Mike is sure to provide you with “put to work now” tips using blogs, podcasts and other RSS marketing techniques for seach engine success. Mike can best be reached through his web site.

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About Our Radio Show

Online Marketing with RSS Ray is a weekly radio program about internet marketing best practices. It is carried live on wsRadio.com, the internet's leading talk station with more than 3 million listeners. You can listen live Wednesdays at 1pm Eastern/10am Pacific or get free podcast versions of the show.

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