moriarty_app9_inppt_12

Report
Part 4
Practice: Where are Media Headed?
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12-1
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What key points should marketers know to make
effective decisions about advertising in newspapers
and magazines?
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What factors do marketers consider in making outof-home advertising decisions?

How do radio and television work as marketing
communication media?

How do marketers use movies and other video
formats for marketing communication?
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12-3
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Print media vehicles include:
◦ Newspapers
◦ Magazines
◦ Brochures
◦ Posters
◦ Outdoor
Print provides more information, richer imagery, and
longer messages than broadcast media.
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Print is often used to generate
cognitive responses.
It is more flexible, less
fleeting, and more engaging
when targeted to special
interest audiences.
Print can engage the senses of
sight, touch, and smell.
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
Newspaper’s primary function is news, making it
useful for ads announcing sales, events, other news.

People read newspapers as much for the ads as they
do for the news stories.

Newspapers are a local, mass medium.

Market selectivity allows newspapers to target specific
consumer groups.
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This beautifully
illustrated newspaper
ad conveys the idea of
worldwide coverage for
telecom giant AT&T.
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The newspaper industry
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Readership is declining, particularly among young
people.
The recession of the late 2000s brought double-digit
declines in advertising.

Newspapers are third to television in advertising
revenue.

Online delivery is becoming an industry growth area.
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Newspaper ad sales
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Ads are sold based on size
of the space and the
newspaper’s circulation.
Local advertisers and
volume buyers get
discounts; national
advertisers pay a higher
rate.
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Newspaper ad sales
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Ads are sold by local sales staff or brokers on the
one-order, one-bill system.
The introduction of standard advertising unit (SAU) in
the 1980s made national buying much easier.
With coop advertising, a local retailer places an ad and
the manufacturer pays for part of the ad.
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Types of newspaper advertising

Display
◦ Can be any size, placed anywhere except editorial section.
◦ May be local (retail) or national (brand).
◦ Run-of-paper rate (can run anywhere) or preferred-position
rate (advertiser selects sections where ad runs).

Classified
◦ Advertising by individuals to sell their personal goods and
advertising by local businesses.

Supplements
◦ Magazine-style publications inserted into newspapers.
◦ A free-standing insert (FSI) is a preprinted ad inserted for a fee.
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Newspaper readership measurement
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Half of American adults read the newspaper daily.
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Readers are older with higher incomes, education.

Newspapers measure their audiences to attract
advertisers who want to reach their readers.
◦ Audit Bureau of Circulations: independently verifies statements
about newspaper circulation statistics.
◦ Simmons-Scarborough: annually measures readership profiles
in approximately 70 of the nation’s largest cities.
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Over 90% of all U.S. adults read one magazine per month,
spending 44 minutes per issue.
Quality of reproduction is their greatest strength.
This campaign makes the case that magazines can be an effective ad
medium even in the age of the Internet.
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Health of the magazine industry
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It has weathered the recession and changing media
environment relatively well.
New magazines continue to emerge, especially those
that target business markets and other growing
segments.
Zines, online versions of traditional magazines,
represent the greatest growth area.
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Health of the magazine industry
 Zines also create interesting dilemmas.
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Consider:
www.wiredmagazine.com

Wired has been on the cutting edge of the digital

What happens to the website if the print version of the
magazine is eliminated?
community. However, its website is the most popular
version.
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Types of magazines
 Consumer magazines
Aimed at consumers who buy products for personal
use.

Business magazines
These target business readers. Examples:
◦ Trade papers
◦ Industrial magazines
◦ Professional magazines
◦ Farm magazines
◦ Corporate publications
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Types of magazines
In assembling their media mix, planners consider:
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Geography: national, regional editions
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Demographics: age, income, occupation, etc.
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Editorial Content: general, women’s, shelter, business, and
special interest.
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Physical Characteristics: 8 ½” x 11,” 6” x 9” most common.

Ownership: publishing companies vs. organizations

Distribution and Circulation: subscriptions vs.
single-copy sales.
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Controlled versus uncontrolled circulation
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Controlled circulation
Traditional delivery through newsstand purchases or
home delivery via the U.S. Postal Service
Uncontrolled circulation
Nontraditional or free delivery to specific audiences:
◦
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◦
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Hanging bagged copies on doorknobs
Inserting in newspapers
Delivering through professionals’ offices
Direct delivery
Electronic delivery
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Magazine ad sales
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Ad costs are based on the size of the ad and
circulation of the magazine.
Typical formats:
◦ Premium positions: back cover, inside covers
◦ Double-page spread: two ad pages face each other
◦ Bleed page: color goes to edge of the page
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Magazine ad sales

Typical formats
◦ Gatefold: more than two connected pages that fold
in on themselves
◦ Special ad page or section that looks like editorial
◦ Multiple-page photo essay
◦ Fractional page space: vertical or horizontal halfpage, half-page double spread
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Magazine readership measurement
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Magazine rates are based on guaranteed circulation a
publisher promises to provide.
Circulation is the number of copies of an issue sold.
Readership represents total audience, which includes
pass-along readers.
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Magazine readership measurement
Objective, outside measurement companies:
 Audit Bureau of Circulations verifies circulation.
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MediaMark’s MRI service measures readership for
many popular national and regional magazines.
Simmons Market Research Bureau provides
psychographic data on readers.
Starch, Gallup and Robinson provide information on
audience size and behavior.
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Directories are books that
list people or companies,
phone numbers, and
addresses.
They are directional: they
tell people already in the
target market where to go
to get the product or
service they want.
Almost 90% of the people
who consult the Yellow
Pages follow up with
action.
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Retailers can buy display space for larger ads, but
directories can be cluttered.
There are more than 7,500 other directories for
professional and interest groups.
As a class:

For more information on the value of directory
advertising, see:
“A Matter of Principle”
“Directories: The Medium You Trust the Most”
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12-24
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
Out-of-home advertising includes:
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It ranks second to the Internet in terms of growth.
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It is situational: can target specific people at a
specific time when they’re most interested.
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Billboards
Hot-air balloons
Buses
Posters
Kiosks
Blimps
Airport displays
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
This includes street and highway advertising, plus
posters in public locations.

Two primary uses of outdoor:
1. As reminder advertising
2. As a directional guide
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Size and Format
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Printed posters or painted bulletins
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Extensions: go beyond the rectangle border
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Cutouts: present an irregular shape.
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Digital displays: use wireless technology to
change messages.
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Outdoor ad sales

Outdoor is sold in
showings, based on
traffic counts.
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Boards are usually
rented for 30 days.

As a class:
What does a “100
showing” mean?
This outdoor board was
designed to dramatize the
quality of the LCD screen on
an Olympus digital camera.
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Retail signs identifying stores are an ever-present
form of brand communication.
Some onpremise signs
also act like
billboards, as
shown in this
highly creative
sign at Bally’s
in Las Vegas.
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12-30
Posters

Used on buildings, kiosks, vehicles, and bulletin
boards.

Kiosks are designed for public posting of notices and
advertising posters.

Did you know…
The iPod was launched in London with walls of posters
that Tube riders encountered on the escalators!
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Transit Advertising
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This is a form of urban mass advertising.
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Ads run on buses, taxis, and moving billboards.
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There are two types of transit advertising:
1. Interior
2. Exterior
Painted vehicles emerged in 1993 with PepsiCo.
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Key considerations:
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Use newspapers to announce something new and
to target local markets.
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Use magazines to target people with special
interests.
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Use outdoor to target audiences on the move and
to provide directional information.

Directory ads catch people when shopping.
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Broadcast media refers to:
◦ Radio
◦ Television and other video forms
◦ Movie advertising
Ads are bought in terms of time (seconds, minutes).
It utilizes sight and sound; is more entertaining.
Radio advertising engages the imagination.
Television creates powerful brand imagery.
Both use emotion and repetition to intensify memory.
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The structure of the radio industry
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The U.S. has more than 10,000 commercial radio
stations, mostly serving local markets.
In recent years, radio industry growth has slowed.
Broadcast forms:
◦ AM/FM
◦ Public radio
◦ Cable radio
◦ Satellite radio
◦ LPFM (low-power FM)
◦ Web Radio or webcasting
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The radio audience
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Radio is close to being a universal medium.
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Virtually every U.S. household has at least one radio.
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Radio is a $20 billion industry tightly targeted based
on special interests:
◦ Religion
◦ Spanish language
◦ Talk shows
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Dayparts
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Audiences are grouped by the time of day when they
are most likely to be listening.
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Typical dayparts:
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Morning drive time: 6–10 a.m.
Midday: 10 a.m.–3 p.m.
Evening drive time: 3–7 p.m.
Evening: 7 p.m.–midnight
Late night: midnight–6 a.m.
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Measuring the radio audience
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Coverage: the number of homes able to pick up
station, tuned in or not.
Ratings: measure percentage of homes actually
tuned to a station.
The Arbitron Ratings Company estimates audiences
for some 250 markets in United States.
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Radio advertising
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Delivers high frequency using jingles for repetition.
Has the power to engage the imagination and
communicate on a more personal level than other
forms of media.
Uses drama to engage the imagination as in public
service announcements (PSAs) which are created free
by agency personnel and run free by the media.
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Radio advertising is divided into three categories:

Network Radio Advertising
◦ Group of local affiliates connected to one or more national networks.
◦ Growth has contributed to increase in syndicated radio
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Spot Radio Advertising
◦ Advertiser places ads with an individual station, not a network
◦ Messages can be tailored for particular audiences
◦ Flexibly in content, timing, and rates

Syndicated Radio Advertising
◦ Offers advertisers of high-quality, specialized, and original programs
◦ Advertisers value the high level of audience loyalty.
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Using radio effectively
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Radio is highly targeted and inexpensive.
Excellent reminder/reinforcement capabilities.
Builds frequency through repetition.
Targets audiences through specialized programming.
Sparks imagination through “theater of the mind.”
Timing is critical.
Radio advertising must “break through” the clutter.
For a look behind the scenes of radio commercial production, go
to: www.radio-ranch.com
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
Television has become a mainstay of society. Some
98% of U.S. homes have one or more television sets.
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Heavy TV use by children has concerned parents and
early childhood experts.

Television advertising is tied to television
programming, so its effectiveness is determined by
the popularity of the television program.
For some interesting insights on TV advertising, check out “A
Matter of Practice, Mad Men: Advertising at the Intersection of
Social Change.”
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Structure of the television industry
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Network television
A distribution system that provides television content
to its affiliated stations.
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ABC, CBS, NBC and Fox are the major networks.
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Each network has about 150 affiliates.
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Local and national advertising pays for station and
network operations.
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Structure of the television industry
Subscription television
 Here, people sign up for service and pay monthly fees.
 The most common form is cable television.
 Cable is pulling ad revenue away from network TV.
 Satellite television is another form of subscription TV.
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Structure of the television industry
Other television formats:
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Pay programming and on-demand programming
Local television
Public television
Syndication
As a class: Discuss the key differences between each format.
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New technology and innovative television
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High-definition TV (HDTV)
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Interactive television
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Digital video recorders (DVRs)
◦ Playback of movie quality, high-resolution images
◦ Content must be broadcast in HDTV format
◦ TV set with computer capabilities; uses broadband
◦ Addressable and 3-D television also are in development.
◦ Enables users to record favorite shows and watch later.
This is called time-shifting.
◦ DVRs threaten marketers because viewers can skip ads.
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Measuring the television audience
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Households Using Television (HUT) measures exposure
based on houses with sets turned on.
Impressions: the number of viewers watching a
program—measured by:
◦ Ratings: converts gross impressions to a percentage; one
ratings point equals 1% of all the nation’s TV homes.
◦ Share: share of audience is percent of viewers based on the
number of sets turned on.

Nielsen measures national and local audiences using
people meters and viewer diaries.
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Television tells stories,
engages emotions,
creates fantasies,
makes a powerful
visual impact.
It also demonstrates
how things work.
TV brings brand
images to life and
adds personality to a
brand.
The famous “crying Indian”
image commercial conveyed a
strong ecology message.
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Advertising sales
Commercials can take several forms:
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
Sponsorships
The advertiser assumes financial responsibility for producing
the program and providing the commercials.
Participations
Advertisers pay for 10, 15, 20, 30 or 60-second commercials.
This is the most common approach used by networks.
Spot announcements
Commercials appearing in breaks between local programs.
Sold by local affiliates to advertisers who want to show their
ads locally.
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Effectiveness of television
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This TV ad utilizes motion
graphics to show how all
energy-saving efforts are
connected.

Television is used because
of the reach it delivers.
It also makes a strong visual
and emotional impact,
creating engagement.
It’s good for messages that
need action, movement,
demonstration.
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Drawbacks of television

Commercial breaks are cluttered, and viewers often
leave their sets.
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Wasted reach: messages reach consumers not in the
target market.
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Viewers zip (fast forward) or zap (change channels) to
avoid commercials.

Advertising time and production costs are expensive.

Clutter, which leads to intrusiveness, and irritation.
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Movie theaters trailers reach captive audiences.
DVD, Blu-ray and other video distributors place ads before
movies.
Promotional video networks are used in stores, offices, and
truck stops.
Marketers are producing video clips for cable, video-ondemand, company websites, MySpace, other sites.
For an example: go to:
www.ge.com/imaginationtheater
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As a class:


Review the “Broadcast and
Video Media Advantages
and Limitations” table in
this chapter.
Discuss as groups, and
provide examples of each.
This ad reminds media
buyers of the power of
cinema.
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12-55
In Chapter 13, we will:


Move on to the equally fast-changing
realm of digital media.
Learn more about the dynamic world of
online communication.
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“Aflac’s Duck Spreads Its Wings”
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In your mind, just how effective is the Aflac duck?
This campaign led to a 94% awareness of Aflac and a
boost of 55% in U.S. sales during the first three years.
Will the next generation of the campaign be equally
effective?
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“Aflac’s Duck Spreads Its Wings”
Key lessons:
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Traditional media is key to campaign success, even in
the age of the Web and social media.
All media components worked together to educate
consumers and boost brand comprehension.
As a class: What others can you think of?
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12-58

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