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Posts tagged: capitalism

Jan 13 2010

Kernels of truth on social media marketing

If I leave a conference with a few “kernels of truth” I can gnaw on and think about, I consider the time well-spent. Here are a few nuggets I picked up at the Social Fresh conference held in Nashville this week.

“Movements make their audience feel like rockstars.”
To me, the highlight of the conference was a talk by Geno Church. Geno, of Brains on Fire, is an engaging speaker and discussed the distinction between marketing plans and a cultural movement. The most amazing case study of the day was work he had done for Fiskars Scissors (I guess you could call it cutting-edge). By enlisting scrap-book enthusiasts (The Fiska-teers) to contribute as bloggers, they created an army of passionate Fiskar users. If you can make scissors exciting, this guy can market about anything!

“People fill information voids with rumors. Your strategy is simple. Don’t allow information voids.”
Another super-bright guy I met was Dan Zarrella. Dan spends his time poring over Twitter statistics to determine the secret sauce that makes something go viral. He applied evolutionary theory, mathematical principles and psychology to his study.  A few Twitter items that people pay attention to:

  • Warnings
  • “Social proof” as evidenced by large numbers of tweets
  • Bigger, bolder, louder statements
  • Tweets with “you”
  • Tweets that are personalized
  • Tweets that occur later in the week

“The biggest failure in social media marketing is not doing anything.”

Paula Berg, who just left her job with Southwest Airlines told some riveting stories about the social web and crisis communications.  Remember when the USAir flight went down in the Hudson and the first news and photos came through Twitter.  USAir did not have a Twitter account … but started one that day!  She also talked about the trust-selling strategy on Twitter, noting that the airline had been on Twitter since 2007 but did not attempt to make a sale through the channel until 2009.  When they did, they set a single-day sales record — only using the social web!

Paula also provided an entertaining case study about a rap-singing flight attendant that became a national phenomenon.

“If you don’t think it’s about BUSINESS your gonna be out of a job!”

This was a refreshing and encouraging statement from Jason Falls, an admitted recovering social media purist. He has distanced himself from the “it’s all about community crowd” and in fact playfully made fun of them.  Nice to see capitalism creep into the social conversation.

Illustration: Christian Science Monitor

Tags: best practices, branding, business strategy, capitalism, research, social media

Filed in Social Media best practices, best practices, business relationships, business strategy, economics of social media | Mark | Comments (5)

Dec 11 2009

Facebook —Wake up! You’re a business, now act like one!

moneybags

Neicole Crepeau is among the smartest bloggers on my social media radar.  Imagine my surprise when out of the blue she sent me this email: “Your blog made me think about some things and I’ve written an article for you. Here it is.”   Isn’t that cool?  So I get to take the day off and we can all enjoy Neicole’s unique perspective today …

Mark’s post Does the social web primarily benefit service companies? discussed some of the obstacles to greater use of B2B social media marketing, particularly by small and medium businesses.  As he points out, businesses must do a better job of integrating social media into their overall marketing strategy.  However, there is an even bigger obstacle to an expansion of business use of the social web, and it is in the networks themselves. 

Wake up, Facebook, Twitter, YouTube, and even LinkedIn.  You might have started as a lark, a side-project done just for fun.  Now, you’re a business.   But you’re not acting like one.

These popular social networks have failed to recognize where their bread and butter is going to come from. Even YouTube, under Google, continues to focus on ads as its potential source of income. It has yet to make that work. Chances are, that model will never be successful enough to turn the profit they need.

I see a clear evolution of social networks, as outlined in my video and blog post of December 8th. It begins with a great idea, like micro-blogging or connecting friends via status updates. That draws an initial, small set of users. The customer base expands as the social network transforms and improves.

But end-users won’t pay for these services—not enough, at least. The social networks now need to look to the corporate world to make a profit.  Remember, you have two customers, guys:

  • End-users
  • Business users

You’ve correctly focused on building a great tool for end-users, and you need to keep doing that. However, you also need to recognize that business users are an equally important customer. Now, go focus just as fervently on them!

Google built a great search solution that end-users love—but weren’t going to pay for. They turned to innovative corporate solutions and found a goldmine.  Facebook, Twitter, YouTube, and LinkedIn need to do the same. But NOT through the same tired technique of ad serving.

These companies need to take a page from the marketing 101 handbook and listen to their customers — business customers — and find innovative solutions for them. What do businesses want to do via your site? Marketing … maybe customer support?  What do they need in order to do that successfully?  Ways to engage and maintain contact with consumers?  The ability to find/target the right consumers? Mechanisms to track and measure their engagement and ROI over time?

They are your customers.  Solve their problems. Make money.

Look at Ikea’s photo-tagging campaign on Facebook. There’s a creative new revenue stream.  How can you make that method available to lots of businesses, with a low barrier of entry/use? How can you monetize it?  Could YouTube do something similar, by making it possible for businesses to find and tag their products in user-supplied videos? Or make it beneficial for users themselves to do product placements in their videos.  Businesses would love to promote those user-created placements!

When social networks treat the corporate world as a key customer, the innovation will really start that will drive businesses to the social web in droves and drive profitable new business models from themselves.

Neicole Crepeau is a 25-year veteran of the tech industry, with experience in technical writing, usability testing, user experience/interaction design, website design, and product management. Her outstanding blog can be found at http://nmc.itdevworks.com/

Tags: capitalism, facebook, Internet marketing, small business

Filed in economics of social media, facebook | Mark | Comments (5)

Dec 06 2009

This is the future of social media

metropolis

With the dawn of the social web, I can’t think of a more exciting time to be in the field of marketing.  But I don’t think we have really seen anything yet!  Here are 12 developments I believe we will witness in the future … and probably sooner than you think.

1) Hyper social measurement– At some point soon, Google is going to start doing something bold with the volumes of personal data they’re collecting.  Google is in the best position by far to define social media monitoring, especially now that they are taking steps to fold in data from Twitter, Facebook and other platforms. Once Google flexes its social media monitoring muscles, companies like Radian6 will become niche players at best. Complex algorithms will determine real-time sentiment shifts down to the individual.  And it won’t be free.

2) Tapping into text messaging– The one communication mode largely untouched by real-time search is text messages.  This is a goldmine of information too big to ignore, especially if you’re a “cool-hunting” consumer product company.  Entrepreneurs will find a way to tap into the “text stream” by rewarding users for being included in their data-gathering systems. Does this seem improbable?  Would people accept a free cell phone and free data service in exchange for their text information being stored in a database for consumer product research and targeted promotions?  It would work.  

3) The human coupon– The massive quantity of personal information available about you will eventually follow you around.  Enabled by GPS and RFID technology, coupons and special offers based on your buying patterns will appear instantly on your mobile device as you near a store.   RFID chips embedded in packaging will send messages during your purchase decision to encourage up-selling and cross-selling.  For example, if you pick up a blouse off of a rack, a message will direct you to the precise area of the store where you can find a matching skirt … on sale just for you. 

4) Radical privacy movement — This intense data gathering and the use of it in a Big-Brother-like manner will spark a backlash, including legislation, assuring the right to be excluded from Internet data-gathering tools.  Because of its power and control over voluminous personal details, Google will become the most profitable, and despised, company in history.

5) Man-machine interface.  Medical advances and social media platforms will converge.  Scientists are already embedding electronics in humans to power limbs, regulate body functions, and enable the brain to access information from micro chips. It’s now possible to think a tweet or control artificial limbs with a thought.  Humans will routinely carry a computer inside of them, powered by body heat and motion. You will literally always be on the social web, generating messages just by thoughts.  Humans will have markings like tattoos to display the premium, designer brand of devices embedded in their bodies. This will give new meaning to the tagline “Intel Inside.”

6) We become the Internet.   Today, people talk about Twitter, Facebook etc., never really connecting that these are all “Internet.”  As the social web literally becomes part of our bodies, we will no longer distinguish between listening, talking and electronic communications. In our minds, there will be no more web. It will just be.

7) Massive national ID validation. The social web will become the exclusive source of consumer information, political research/policy development, and education systems. Because of the increasingly critical  importance of this feedback and the opportunity for corruption, complex systems to prevent fraud will be needed, including a broadly-implemented government validation program that extends across all platforms.

8) Micro politics — Politicians will use real-time sentiment analysis to craft and re-craft voter appeals right up until the moment they enter a polling station.  Political messaging will be nearly-instantaneous and tailored to individuals based on data purchased from Google.

9) Extreme content — Journalism, film-making and advertising agencies will thrive, much to the surprise of nearly everyone.  The need for content on the social web will drive radical evolution of  these three traditional professions and “Content development and management” will become a popular college major.  While most content today is generated through “free” submissions to YouTube, blogs, etc., salaries for the very best and most creative content providers will skyrocket as corporations raise the creative bar to cut through the clutter. 

10) The loner workforce. The cultural impact of the social web will have radical implications for managing the workforce of the future. How do you deal with a generation of employees who have been conditioned to communicate through their thumbs?  Employee training of the future will look increasingly like video games.

11) Digital divide grows  — For many parts of the world, access to free, global communications will be a great equalizer between rich and poor nations, especially as web-based translation services improve and encompass local dialects. However, in countries where people cannot access the web either for economic or political reasons, the digital divide will not only grow, it will become permanent for one simple reason: they will fall so far behind the technology curve they will never be able to catch up. Digital commerce, innovation and technology will be permanently dominated by those nations in the game NOW. 

 12) Pay for play– Social media is free but the cost of attracting consumer attention will become increasingly expensive, especially with the ability to skip ads.  At some point, the cost per impression will be so high it will be less expensive to simply pay people to watch an ad.   Combined with the “human coupon” trend mentioned above, this would provide nearly perfect information on cause and effect of advertising campaigns. 

Well, that’s enough far-out thought for one blog post and I’m sure you have A LOT to say about it!  Your turn. The comment section is now OPEN!

Tags: advertising, best practices, business writing, capitalism, careers, competitive advantage, corporate communications, futurist, innovation, Internet marketing, marketing strategy, research, social media, sociology

Filed in futurist | Mark | Comments (58)

Nov 24 2009

Is this the end of the social media purists?

Jason Falls

I have never used this community to comment on another person’s blog but today I’m just so happy, so enthralled, so downright giddy that I could kiss my keyboard.  One of the social media purists has finally discovered the bright, clear light of capitalism.

And it couldn’t have happened to a nicer guy — Jason Falls.  Jason is one of my favorite bloggers but has historically been one of the stalwart “keepers of the conversation.”  You know the type — the social media country clubbers who set the industry’s tone with a relentless mantra of “it’s all about connection” and “conversation” and “relationships.”  In fact, a few months ago, Jason went so far as to write that any company expecting to make money off of social media will fail.

But a new day is dawning.  Yesterday, in a post entitled “Why Social Media Purists  Won’t Last,” he wrote:

Each time I discuss the business goals or reasons why a client wants to use social media, the answers come down to one thing: selling more stuff. It’s a harsh business reality. If you don’t make money, the business goes under. If you don’t make more money, people lose their jobs.”

The social media purists have laid down the law and, so, to participate in social media as a business, you must do things like, “participate in the conversation,” “engage your customers,” and “talk with us not to us.”

I’ve got news for you. In the world of business, all that talk will get you exactly nowhere. Conversations do not ring the cash register. Engagement does not sell more product. Talking with people just means you have to take time to listen which prevents you from spending valuable time selling more product.

Halleluia.  Maybe I’ll finally have some company out here in the social media netherworld of business rationality.

And if this isn’t enough reason to celebrate, read what the Ultimate Blogging Machine Chris Brogan wrote just a month ago:

Think Like a Business – if you’re in this for business, always ask yourself how this work ties to more sales (and if you’re not trying to make money, think of “sale” as whatever you hope to convert. Hint: it’s not “more audience.”). If you’re just writing to write, shooting video to get it up there, tweeting because people said you should, rethink all that. Decide what’s going to ring your register and work on that.

What???  Ring the register?  Not seeking “more audience?”  Could this be an era of enlightenment for the guy who recently yelled at his audience:  “This is NOT about you and your STUPID COMPANY” ?

What’s happening around here?  My guess is that both have recently had a big dose of the real world.  Falls went out on his own and had to come out from behind the P&L  protectionism of agency life.  Brogan’s sudden emergence on a bigger stage probably got him in front of experienced business people instead of the sycophants who dutifully re-tweet his every blog, bluster and burp.

So this begs a new question.  Are my days as a contrarian coming to an end?  I mean if Brogan’s in, the burp tweeters will fall right in line. If the social media elite are finally figuring it out, what do I write about now?  Hmmm.  How about, “It’s all about the conversation?”  : )

Tags: blogging, business strategy, capitalism, competitive advantage, social media, sociology

Filed in Personalities of the social web | Mark | Comments (13)

Nov 15 2009

Will an economic recovery pummel social media?

now-hiring

I’ve had the great privilege of teaching a college-sponsored class on social media marketing and as usual, I’m learning more from the class than what they’ve learned from me … but that will be our little secret, OK?

As I was providing examples of how you can leverage content across various channels to increase awareness, I had to admit that I didn’t practice this very well myself.  Why?  I just don’t have the time.  

My marketing consulting practice has been very strong, and as I strive for an ideal work-life balance, something has to give.  Time spent on incremental efforts like Facebook and Twitter has to take a back seat to family and customer needs.  

This may seem like heresy from somebody who lives and breathes marketing, but I think this will be reality for more and more people.  As the economy heats up, unemployed, or under-employed, individuals spending vast amounts of time on the social web and networking will have to make new choices as they return to work.  

Here’s my hypothesis:  The growth of social media will slow as the economy improves.  And in areas where the economy is doing extremely well, social media usage may actually decline slightly.

Other possible implications:

  • As people return to work, the prime activity level on social media will be more heavily-weighted to the evening hours, since many companies restrict social media usage in the workplace.
  • The number of channels in which people participate will narrow. This may hasten the decline of some platforms like MySpace.
  • There may even be a slight shift in advertising budgets BACK to traditional media (drive-time radio?) since access to Internet-based impressions will be limited in a workplace.  How do you see a Facebook ad when you’re working a construction job?

I believe that use of the social web will still grow overall as people and companies find clever new ways to make the underlying technologies more useful and fun. But I think it is unavoidable that an improving economy will temper this growth.  The best environment for social media growth is when people have a lot of time on their hands and a shift is in our future.  Do you agree?

Note:  In addition to some wonderful comments below, you can find a nice counterpoint perspective on Gregg Morris’s related blog post: http://bit.ly/3tQtiW

Tags: business strategy, capitalism, financial impact, marketing strategy, social media

Filed in B2B and social media, best practices, business strategy, economic development, economics of social media | Mark | Comments (17)

Sep 12 2009

Andrew Carnegie on Social Media

I grew up in Pittsburgh and so naturally learned a lot about American industrialist and philanthropist Andrew Carnegie. A reporter once asked him the secret of his phenomenal business success. His answer was simple:

“I have the courage to surround myself with people who are smarter than me.”

This has always been one of my favorite “life quotes.” It marked my managerial style in corporate America and I think it is a valuable piece of wisdom for those engaging on the social web, too … especially blogs.

This favorite quote came to mind as I read the comments on my blog post this week, “Blogging – The Ultimate Team Sport.” I began to wonder, is the community on {grow} the team, or are they the leader? : ) Maybe a little of both!

The big point is, so much value can be created on the social web by surrounding yourself with brilliant people and then having the confidence and wisdom to turn over the conversation to people who really know what they’re talking about! That’s when the magic happens, whether you’re making steel or creating ideas.

Tags: blogging, business relationships, capitalism, social media

Filed in business relationships, social media | markschaefer | Comments (1)

Aug 28 2009

To Free, or not to Free …

Trying something a little different on {grow} today – I’m presenting TWO sides of an issue. Isn’t THAT refreshing?
A few weeks ago, I remarked in a post that social media measurement is still a concern among many marketers and suggested that the world needs a cross-platform, comprehensive dashboard for small businesses. And it should be free.
Steve Dodd, a regular contributor to the {grow} comment community disagreed on the “free” part. So I figured we would have a blog duel, or a “bluel” so to speak. I’ll present my side and then Steve will present his and everybody will probably learn something. I go first. It’s still my blog!
“Pro free” by me
In the early days of the Internet, one expert predicted the invention of the search engine, but thought the software would be so expensive only a few people on Earth would be able to afford to use it.
What he couldn’t predict was that the price of information storage dropped to near-zero, enabling revolutionary new business models based on “free.” Google and thousands of other companies can provide some of the world’s greatest software at no charge because they’ve created new revenue channels to support their business machine. And I thank you, good Sir Google. You’ve changed my life.
When the core asset of a business is data storage/management, there’s no good reason why this business model wouldn’t work the same way for a measurement dashboard. Give it away to the people, dominate the space, then charge advertisers and corporations out the wazoo to get on board. Everybody’s happy. It’s the American Way.
“Against free” by Steve Dodd
This is an “apples to oranges” comparison. Search and measurement are very different products. Technologies designed for consumer consumption (Internet Search, TV, Radio, etc.) are meant to deliver targeted advertising. Their advertisers are paying for that right, controlling the deliverable, and thereby monetizing the service. Ultimately, the consumer is the product being sold to the advertiser. The low-cost storage, computing power and Internet technologies are just the distribution vehicles.
Measurement and analytics on the other hand, are independent, fee-based services that all advertisers gladly fund to determine how best to advertise to the viewers. Companies like Nielsen get huge money for this service. This is no different than measurement services for the social web. The more comprehensive and automated those services are, the more the advertisers/marketers are willing to pay because of the value they gain.
Social media agencies charge significant amounts for their expertise in interpreting the results from these measurement solutions. Why shouldn’t the tool providers share in this revenue, based on the unique value they’ve added? This way they can fund the development of improved services.
Also, without the pressure of advertising, the agency/user knows their results are not compromised. In the case of free search and email, not only are you getting advertising but the sequence of the search results themselves are skewed based on fees paid and other technical manipulation (i.e., SEO). Furthermore, the sophisticated analytical services actually remove advertising content (spam) from their results to ensure users actually receive clean, valuable user generated content.
For the small business on a budget, there are many very solid measurement services available for free. The caveat is that the user assumes the responsibility of pulling all the pieces together (including spam removal in many cases). Many of them depend on advertising to some degree. The rest promote more advanced, fee-based services. The choice of which direction to take (comprehensive fee based or free service components) rests with the user and their business requirements.
Another analogy is the open source software market. There is a wealth of free computer programs available through the open source market. In fact, most of the social media monitoring/measurement/analytic systems out there contain a lot of open source modules. As the open source market has evolved, fee-based business applications have been built by integrating these free programs. Great examples of this are in the CRM space. Choices in the social media market are evolving in much the same way.
What do YOU think?
Illustration: T-shirt design by www.sogeshirt.com

Tags: capitalism, financial impact, measurement, research, social media

Filed in ROI and measurement, social media | markschaefer | Comments (5)

Jul 26 2009

Yes, it IS about the money

I know social media is about “relationships.” I get it … I really do. But if you are responsible for a social media initiative for your company, somebody is eventually going to ask you, “Where’s my money, honey?”
In a business setting, social media relationships must eventually lead to making or saving money. Of course they do. Every activity of the enterprise is tied to that in some way. So, why does this opinion create such a violent reaction in people?

The fact that I think you should be focused on the quantifiable business benefits of social media marketing seems to put me squarely at odds with many thought leaders right now. This quote from a very respected blogger still haunts me:

“When you ask businesses why they are participating in social media, what do they say? If they say, “to make money,” then they will fail, because currency in the social web is found in both relationships and content.”

Another leading observer opined yesterday that his “economy is relationships.”

An economy is not relationships. An economy is an exchange of goods and services. If the relationships contribute to that exchange, fine. But it all has to lead to business value at some point. You can’t feed your kids by increasing your “followers” or the number of people who have friended you on Facebook.

How is social media marketing any different from holding a company open house for community leaders or hosting a dinner to get to know some potential customers? Are those things about building trust and relationships? Yes, of course! But we also have no problem admitting that the ultimate goal is to burnish our image with these influencers to improve our chance of business success. Why are we so intent on carving out a special little place in the sun — where results don’t matter — for the social web?

The world would be so much easier if we didn’t have to be accountable for results. But that’s not the way business works. A company exists to create shareholder value, so that’s what you should do — and be PROUD of it!
Tomorrow, ideas on what measurements make sense for your business.
This is part of a series examining social media marketing measurement.
Part 1: The biggest lie in social media marketing

Part 2: Social media ROI shock treatment

Part 3: Irresponsible social media measurement research            

Part 4: Social media impact on brand equity                                                        

Part 5: The most important question to ask in social media marketing     

Part 6: A double standard for social media marketing?                   

Part 7: Yes, it IS about the money!                                                          

Part 8: Creating a measurement plan                                                     

Part 9: Measurement is like a bartender                               

 

Tags: business relationships, capitalism, corporate communications, customer acquisition, ethics, facebook, financial impact, Internet marketing, marketing strategy, measurement, social media

Filed in ROI and measurement, Social Media Strategy, Social Media best practices, business relationships, economics of social media, social media | markschaefer | Comments (8)

Apr 30 2009

Should I go on strike?

ayn rand“Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter.” – Ayn Rand writing in Atlas Shrugged.

The recession has edged our government closer to full-blown socialism: nationalizing banks and industries, increasing social welfare to record levels, firing company executives, leveraging the future of the country by printing money by the truckload. Blaming greed and the free market, Washington responds with even more control that only deepens the crisis.

As I was swaying on the porch swing, observing a beautiful East Tennessee Spring evening, I thought, “Ayn Rand was right.” Then I thought …” you need to get a life.” Then I thought about Ayn Rand again.

Rand was an American author and her final novel, Atlas Shrugged, is about a fictional world that eerily resembles America today. I can’t stop thinking about how prescient she was.

In the book, the nation’s inventors and producers are taxed, abused, and forced to support a society of pasty money-grabbers increasingly dependent on a welfare state. The pandering politicians use laws and moral guilt to confiscate the businesses, inventions, art, scientific research, and ideas of its most brilliant leaders. Finally the “men of the mind” can’t take any more and go on strike. They hope to demonstrate that the economy and society will collapse without the profit motive and the efforts of the rational and productive.

And collapse it does.

As I thought about this book and its relevance today, I learned that I’m not the only one drawing comparisons.

Atlas Shrugged was written 51 years ago, but is selling faster than ever. This month, Amazon listed the book at its #1 sales position for the fiction and literature category! Rush Limbaugh frequently refers to the work and Congressman John Campbell (R-CA) said this year: “People are starting to feel like we’re … living in Atlas Shrugged.”

Two op-ed pieces referencing the book were featured in the New York Times just this year. One was written by Dr. Yaron Brook, executive director of the Ayn Rand Institute.

“Why do we accept the budget-busting costs of a welfare state?” Brook wrote. “Because it implements the moral ideal of self-sacrifice to the needy. Why do so few protest the endless regulatory burdens placed on businessmen? Because businessmen are pursuing their self-interest, which we have been taught is dangerous and immoral. Why did the government go on a crusade to promote “affordable housing,” which meant forcing banks to make loans to unqualified home buyers? Because we believe people need to be homeowners, whether or not they can afford to pay for houses.

“The message is always the same: “Selfishness is evil; sacrifice for the needs of others is good.” But Rand said this message is wrong — selfishness, rather than being evil, is a virtue. By this she did not mean exploiting others à la Bernie Madoff. Selfishness — that is, concern with one’s genuine, long-range interest — she wrote, required a man to think, to produce, and to prosper by trading with others voluntarily to mutual benefit.

“Rand also noted that only an ethic of rational selfishness can justify the pursuit of profit that is the basis of capitalism — and that so long as self-interest is tainted by moral suspicion, the profit motive will continue to take the rap for every imaginable (or imagined) social ill and economic disaster. Just look how our present crisis has been attributed to the free market instead of government intervention — and how proposed solutions inevitably involve yet more government intervention to rein in the pursuit of self-interest.”

Ayn Rand offered us an answer — independence and individual achievement enable society to survive and thrive, as long as there is a rational moral code. Over time, coerced self-sacrifice will cause society to self-destruct.

That is why she is relevant today.

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Tags: capitalism, ethics

Filed in ethics, sociology | markschaefer | Comments (0)

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    "A List" bloggers are, well, bloggers. What A-list blogger would think they need a website? Probably as many as product companies think they need a blog : )

    Different audiences want different information. If I’m coming to a site to buy a product – I don’t want to read a blog about the state of the market. If I'm coming to Mark’s blog ... the last thing I want is to have him sell me some product.[more]

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