Self-Reinforcing, Self-Promotional Bias

A large part of making business successful is leveraging your authority and using nepotism to extend your sphere of influence. If things look a bit circular in nature that is because they are. Nearly everything you consume has a self promotional bias, but is that any reason to complain? Wouldn't be even scarier if the things you enjoyed and associated with were self destructing?

Examples of Self Promotional Bias in the Media:

If a politician pushes bogus laws (that they know will never be passed) for self promotion and news coverage then why wouldn't the media companies that grant that exposure also grant themselves some leeway? Do you think a news company owned by GE is going to publish a cover story about pollution by GE? Do you think Fox News will stand up against their big advertisers (even when their advertisers are responsible for causing cancer)? Of course not.

The bigger something gets the more hidden stakeholders it has to appeal to. Very rarely do owners get the opportunity to speak honestly about large companies. In many cases they are obligated not to in order to maximize shareholder value. I have had VCs offer to invest in me multiple times but have refused time and time again because I don't want hidden stakeholders controlling my actions.

People discouraging institutional analysis may say Noam Chomsky's Manufacturing Consent is a conspiracy theory, but why would it be? What business isn't biased toward their own self interests? Self preservation is a core goal of any institution.

Broken Egos:

Many junk products exist with demand driven by hype, spam, and scammy multi-level marketing, but many
business models exists because we as consumers have holes in our egos and want to lie to ourselves to justify our own flaws and actions.

As technology replaces the roles of many workers while making communication cheaper and easier, people have to do more to earn a living and it is harder to create new ideas, so we have to do more cause driven things to feel purpose and meaning in life.

We want to believe that ethanol
is providing cleaner fuel
even if creating it takes more energy than it creates.

As for the environmental impact, well, where do we begin? As an oxygenate, ethanol increases the level of nitrous oxides in the atmosphere and thus causes smog. The scientific literature is also divided about whether the energy inputs required to produce ethanol actually exceed its energy output. It takes fertilizer to grow the corn, and fuel to ship and process it, and so forth. Even the most optimistic estimate says ethanol's net energy output is a marginal improvement of only 1.3 to one. For purposes of comparison, energy outputs from gasoline exceed inputs by an estimated 10 to one.

Bias in Consumption:

Why is Fox News so profitable? Because it isn't really news. It is biased entertainment sold as news:

A new study based on a series of seven US polls conducted from January through September of this year reveals that before and after the Iraq war, a majority of Americans have had significant misperceptions and these are highly related to support for the war in Iraq.

The polling, conducted by the Program on International Policy (PIPA) at the University of Maryland and Knowledge Networks, also reveals that the frequency of these misperceptions varies significantly according to individuals’ primary source of news. Those who primarily watch Fox News are significantly more likely to have misperceptions, while those who primarily listen to NPR or watch PBS are significantly less likely.

Just like how we want to believe certain lies to make ourselves feel good, we also consume things
that reinforce our identities and worldviews.

How many decidedly centrist political blogs are successful compared to the number of strong democrat and strong republican blogs? It is easier to trust things that are easy to relate to, and trust has more value than objectivity.

I probably read just about every blog post that links to my site because I want to know why people are
talking about me. Is that a self serving bias? Absolutely. But why wouldn't I have that bias?

Changing Someone Else's Worldview:

It is much easier to sell someone something they want than to try to change their worldview.

An SEO thought they were going to change the image of SEOs on Digg by writing a letter about SEO. After getting many votes it was promptly removed from the Digg.com homepage.

It is even easy for a well rounded guy like Scott Karp to view SEO in a negative light after seeing so much negative coverage of the topic. Scott was more receptive to feedback than Digg because he only needs to change his opinion, he doesn't have to go against the group think consensus on Digg to change his content.

It is easy to be popular as a politician in the US by hating terrorists, gays, and gay terrorists. It is easy to be popular on Digg by hating SEOs. Neither of those mean that the blind hate is correct or has any value (other than realizing it creates a market that is easy to exploit - because as a market they are targeted and already letting others exploit them).

Many business owners create business models that explicitly are designed to take advantage of the blind faith, bigotry, ignorance, and hypocrisy core to many popular religions, or other large self-serving authority structures.

Fighting Noise:

As markets mature, market leaders have less time to learn (because they are so overwhelmed with things to do). Given that publishing costs have dropped to zero and web business models are so scalable, is it any wonder that market leaders tend to read less and do more testing on their own (especially if they became a market leader as a side effect of learning)?

Aaron Pratt has recently whined about the circular linking patterns of SEO elites, even having a guest post by Michael Goldberg, but a comment on that post by Ahmed Bilal was spot on:

In any such environment the good will rise and then naturally protect themselves by strengthening their following (herd). If you want to get to the top (topple them, beat them, match them, whatever), you have to build your own following, your own herd.

What are we doing about this right now? Are you actively finding, reading and linking to one new SEO blog a day?

If you want to be read, then you have to be interesting and you have to attract attention. That’s the way it works best - asking for attention or saying that you deserve it won’t help.

And yet on my recent blog post about the recent Google (update algo tweak refresh whatever) Aaron Pratt said this:

I am not seeing any loss/gain of earnings in Adsense which leads me to believe their is nothing going on.

Being a good SEO is about noticing patterns beyond your own experiences and surrounding yourself with others who can do the same.

Notice that I didn't outright call the latest Google Update an update, because Google heavily controls that language and wants to obfuscate examination of their changes (wait for the official word from Google on the data push / update / refresh / etc). Just how Google controls their update language, their self promotional bias and control of search related language is largely responsible for the public perception of SEO.

My Experiences With Authority:

Less than 5 years ago I got kicked out of the military. Since then:

  • I have been flown to a college and asked if I want to become a professor, but I think I wanted far more money than they wanted to pay. Since then I have created numerous passive income streams that far exceed what they would have paid.

  • I have had multiple VCs want to by a stake in my businesses, but turned them down.
  • I have been offered to get published by a major publishing house, but turned it down because it would have screwed up my business model. There is no business model in getting published unless you are publishing a thinly disguised advertisement or need the publisher for credibility.
  • I have been mentioned in the mainstream media numerous times. Not typically for the stuff I know best, but more for getting sued and for being the person who spent $8 registering BlackHatSeo.com. I have had done some long interviews that have never seen the light of day because I was far too honest.

Those were all opportunities at traditional forms of authority, and generally I turned them down because they were not worth the cost. The point here is that generally I am not a fan of most authorities.

Becoming an Authority:

If you are new to the market you do have biases against you: capital, market knowledge, relationships and attention. But you also have the advantage of being able to take the time to create really cool stuff and do lots of tests because people are not expecting you to do lots of things every day, and you can learn from mistakes of those who entered the market before you.

To get market recognition in a saturated market you have to come up with new, interesting, or innovative things. And if you can't do those you have to at least cause human emotions...do things that appeal to people and make people feel love or hate. Look how new SEOMoz is and they are already on the 1st page of Google for SEO and got a ton of media coverage.

If bias toward known authorities is something that is a common flaw with humans and all social structures there is little value in complaining about it. Instead accept it for what it is and let it feed into your marketing. Sure the Good Old Boy's club sucks, but if you don't offer solutions, then complaints about flaws in human nature are void of meaning.

Via (RCJordan (WMW))

"Resource" is an encomium bestowed only by users; "authority" is bestowed only by previously recognized authorities. Anyone who calls himself either one, is just an ego with vocal chords.

Large Networks Adding New Editorial Content Formats

Feb 22nd

Many top destination sites are adding blogs and other publishing formats to their site to build their authority and market-share. This editorial content creates value, builds trust and authority, and allows for a more profitable blend of content and advertisements.

Yahoo! & Yahoo! Tech:

  • Yahoo! Tech has a holiday shopping guide and a holiday gift guide as well as user voting. Notice the anchor text on those first two links...they are naming some of their services specifically for keywords.

  • Yahoo! Tech also offers fake celebrity wish lists where they tell you what they suspect certain celebrities would like. Which is quite absurd considering one of their celebrities is a Yahoo! worker. How hard would it be just to go get their real wish list directly?
  • Yahoo! wraps content in a small bite size video format called The 9. Notice how The 9 packages content, links off to other sites where necessary, but often features other Yahoo! content. This news is packaged as though it is not an advertisement for Yahoo!'s various content properties.
  • What is scary is that the editorial is fairly lenient, occasionally adding real value. Yahoo! is posting tips on how to save money on Amazon.com.

Amazon:

Some of the large platforms have significant market leverage, capital, the ability to quickly test and track the results of tests, improving user feedback integration, recommendation engines, and are adding features to make ordering easier in higher priced and more complex verticals. Add all those forms of value creation and optimization to a blend of ads and editorial content and it is going to be hard to compete with them in the search results.

If you are a niche player and do not have a compelling editorial element or industry standard reference documents it is going to be hard to compete in a few years.

Who Uses MySpace?

Feb 21st

While I still have a MySpace account I never log in anymore. There was too much spam to deal with. And my girlfriend got so many creepy messages that she had to delete her account. Generally, to use MySpace much, you have to do one or more of the following:

  • not value your time much

  • have a lot of spare time
  • be desperate to connect, and have few outlets
  • be a creep sending creepy messages
  • be an anonymous creep viewing profiles
  • be an automated spam bot or something that phishes accounts

MySpace grew too big to keep any sort of community feel the way that Digg has. It tried appealing to too large of an audience, and now it has no value outside of tracking the latest spam offers.

If I had a viral widget idea of course I would still want to pitch that to MySpace, but generally, as an end user, I just don't see any value to MySpace, do you?

This lack of value can also be thought of in ways that search engines may value certain types of websites that are not well integrated into communities on the web. If you spend time and money wading too deeply into those categories (or creating those types of site) you not only waste your time and money, but you also are not focusing on how to build trust and perceived value.

If it is your first site, it is awful hard to understand how to create perceived value and do the marketing well enough to be profitable before getting burned out. I think any type of site can have an editorial element bolted on to add credibility. And editorial content should be easy to add to a site if you are in tune with your marketplace and your customers.

If one channel is easier or more compelling to subscribe to than another then it is going to get more links, more attention, more readers, and win due to network effects. But if the channel gets so broad that it doesn't stand for anything eventually it will melt down, especially as smaller niche sites that are more relevant and easier to identify with are created.

Placing Your Brand Above Others

Feb 20th

When submitting to directories, buying paid search ads, buying display ads, or ranking in organic search a small company with a smart marketer can seem like it is much more powerful and much more authoritative than it is. But some webmasters undermine their authority by not considering how displaying ads on their own site could affect the perception of quality.

Which Directory is the Best?

Many directories sell sitewide banner ads to other directories, which directly states the other directory is of higher quality and more worthy of submitting to, not only for how the ads flow link equity, but also for the general brand perception.

Sell Yourself First:

Some sites make the same error of undermining their perceived site quality by placing external ads above their house ads or internal products. An earlier version of my site design placed other ads in-line with the content and the ad for my book on the sidebar. The day I put my ebook ad inline with the site content my sales tripled. If you have an editorial site that people subscribe to the easiest thing to sell should be your own stuff since people reading your site already trust you. Now my site has less ads, a better brand perception, and more profit.

Promote Your Content to Sell the Ads:

Without distribution it is hard to make money from advertising. Without heavily promoting the value of your content it is hard to get much distribution, especially with the self reinforcing nature of networks and the web.

Some sites are so optimized for short term profits that they undermine their own authority by placing a large ad block above the content. There are many creative ways to slightly reduce ad CTR while still leaving the general perception of quality to most site visitors. Just about every link you get will be from someone who visits your site. If your site leaves a good perception of quality and trustworthiness it is much easier to be deemed as linkworthy than if your site looks like an ad farm. AdSense aligned top and to the left is the equivalent of a noisy FFA page.

The order you place things in tells readers of your site what you think is most important. If you are in a competitive marketplace it is hard to compete if you place other brands or ads above your content.

Buying Bloggers Wholesale

Jan 28th

Google's algorithm has placed more weight on core domain authority, and Weblogs Inc has decided to kill off many of their lower end niche brands.

Google trusts bloggers a lot, but AdSense generally sucks as a monetization method. It turns out some upstart websites are buying up bloggers. In this video, Babble stated they are hiring 10 of top 50 parenting bloggers. If you hire a half dozen well known work at home mom bloggers part time for $1,000 per month you can leverage their knowledge, reach, mindshare, and link equity. If you can mesh them into a community feel without running into ego problems you become the topical expert for just about any topic in the world ... for $6,000 a month.

In much the same way that people are buying older trusted domains, don't be surprised to see 2007 as a year which many monetization and business experts partner with many naive amatures to create scalable businesses that displace the market position of many of the larger conglomerates like About.com, one vertical at a time.

As faking authority and leveraging older signs of trust get less and less profitable business owners will need to become the topical experts they were pretending to be. As the market for ad dollars, audience, and talent get more and more competitive people skills are going to be increasingly important.

Technorati and Google Blogsearch will tell you who is trusted. Go out and buy them while they are still cheap!

When the Wall Street Journal Lies for Links

Dec 31st

The WSJ recently published an article that called blogs parasitic trash:

The blogs are not as significant as their self-endeared curators would like to think. Journalism requires journalists, who are at least fitfully confronting the digital age. The bloggers, for their part, produce minimal reportage. Instead, they ride along with the MSM like remora fish on the bellies of sharks, picking at the scraps.

But actions speak louder than words. That same WSJ reported on an unconfirmed TechCrunch rumor about the YouTube acquisition by Google.
They also mention the lack of overlap provided by self selection bias:

This cross-referential and interactive arrangement, in theory, should allow for some resolution to divisive issues, with the market sorting out the vagaries of individual analysis. Not in practice. The Internet is very good at connecting and isolating people who are in agreement, not so good at engaging those who aren't. The petty interpolitical feuding mainly points out that someone is a liar or an idiot or both.

But the web also makes it easy to reference past facts and changes in bias or perspective over time, which is something they are afraid of.

Any attempt by authority to make things seem universally right or wrong / white or black amounts to a self-serving attempt to stay relevant. If they believe their lie enough hopefully they can convince others to do the same.

Professionals do things for money. Amateurs do things because they are genuinely interested. Who would you rather trust?

Google AdSense as a Terrible Business Model

I am still a fan of AdSense as a way of determining a baseline income potential for a site, but I don't see it as a long-term viable business model for most small publishers. Why?

Smart Pricing (or Maybe Dumb Publishing?)

I friend told me how much he made from AdSense a year ago, and in spite of increasing his network pageviews 200% since then his earnings this month are 10% lower than they were a year ago.

And Google still does a sloppy job policing their partner network. What happens if their editorial review costs increase. What does that do to the percent of ad income Google needs to keep to keep growing?

A Glut of Publishing:

It is getting easier and easier to publish online. The number of people writing is probably growing at a faster rate than the number (and income of) of people reading, which means you will have to be more compelling and put more effort into your content and marketing if you want to keep your pageviews up.

And Google has been placing more weight on authoritative domains, which is squeezing many small players out of ranking in the search results.

Newspaper & Magazine Archives: More Glut:

As business deals are worked out, and trusted archived content comes online, many business models based on AdSense spam will lose a large portion of their traffic to mainstream media companies that are not currently fully leveraging their archives.

If Google bought YouTube how long before they buy Olive Software or create a similar technology?

Frothy Ad Market:

I just saw a big, ugly, and obtrusive AOL ad on Amazon.com's home page. If people are buying general untargeted graphic ads on the largest retail site they must be overpaying for it.

A Lack of Competition:

Some of the executives of Yahoo!'s Publisher program recently announced they were quiting, and with Google's lead in the contextual ad space with virtually no competition, I have to take that as a bad sign for Yahoo!, and for independent publishers in general.

Google's General Arrogance:

Today many publishers noticed bright Google logos in their ad boxes inviting readers to sign up for AdSense.

Potential Text Ad Blindness:

People have learned to ignore banners and common ad locations. How long until people learn to ignore common AdSense formats, especially as the ads appear so prevalently on so many sites? What if people become more receptive to identifying ads (even in the content area)?

Not Worth It:

Add all those up and it gets a bit bleak looking to AdSense as anything more than a baseline estimate for effortless income or a backfill for unsold inventory.

What if instead of monetizing every page, niche publishers used most of their pages to keep attention and link equity flowing their way, and then just monetized targeted high value sections of their sites using well integrated affiliate offers and/or selling direct products?

Web 2.0 Publishing

addicted to attention
he kept writing
long after he had anything meaningful to say
posts equal profit

and the worst thing you could do is react
the words are devoid of meaning or truth
not for profit, but he needed to lie
to get sustainable exposure

he grew into his toys
and neeeded new ones
he deserved them
for all his hard work

mindless drones vote on headlines
marketers get links and money
what does it mean to be professional
do the ends justify the means

How Google AdWords Ads Manipulate Google's Organic Search Results

SEO Question: I was thinking about buying Google AdWords and AdSense ads or placing AdSense on my site. Will doing any of these increase my link count, Google rankings, or rankings in other search engines?

Answer: PPC ads go through redirects, so they do not count toward your link popularity, but there are other ways to tie together PPC ads and organic search placement. Search engines claim there is no direct linkage between buying ads and ranking, but they only talk in ideals because it helps reinforce their worldview and help them make more money.

Buying AdWords Ads

What They Won't Tell You:
Highly commercial keywords may have the associated editorial results go through more relevancy filters and/or be editorially reviewed for relevancy more frequently. Also, because they want people to click on the AdWords ads there is a heavy informational bias on the oranic search results.

I know some people who have large ad spends that get notifications of new ad system changes ahead of time, and others who get to give direct feedback to allow them to participate in cleaning up search results and minimizing unfair competing actions in the ad systems. So that is one type of cross-over / feedback that exists, but I think that tends to be more rare, and the more important cross over / feedback that exists is an indirect one.

Just by Being Real
You can't really explain why and how everyone does what they do. Some people who find your product and enjoy it enough to leave glowing testimonials will even tell you that they don't know how they found it.

In the same way that targeted ads can lead to purchases, they can also lead to an increase in mindshare, brand, reach, usage data, and linkage data. Just by being real and being seen you are going to pick up quality signals. If you try to factor all of those into your ad buys most markets are still under-priced.

Cross Over Due to Buying AdWords:
A well thought out pay per click campaign can feed into your SEO campaign more ways than I can count. Here are a few examples.

Integrating Offline & Online:
In a TV commercial Pontiac told people to search Google, and got a ton of press.

Big Controversial Ads:
Mazda quickly bid on Pontiac.

Many companies also have strong ties between the legal and marketing departments. If buying or selling an ad gets you sued and gets you in the news the value of the news coverage can far exceed the cost of the ads and legal fees.

Small Controversial Ads:
When I was newer to the field one friend called me the original link spammer. He meant it as a compliment, and I still take it as one. In much the same way I was an aggressive link builder, I was also quite aggressive at ad buying.

I caused controversy by buying names of other people in the industry as AdWords ads. I was prettymuch a total unknown when I did that, but some of the top names in the industry elevated my status by placing my name in heated discussion about what was fair and reasonable or not.

You can always consider placing controversial / risky ideas or ads against your brand or competing brands as a way to generate discussion (but of course consider legal ahead of time).

Drafting Off New Words & Industry News:
When the nigritude ultramarine SEO contest started I bid on AdWords. Some people discussing the contest mentioned that I bid on that word. If an event bubbles up to gain mainstream coverage and you make it easy to identify your name as being associated with it then you might pick up some press coverage.

Industry buzz words that are discussed often have significant mindshare, get searched for frequently, and larger / bureaucratic competitors are going to struggle to be as plugged into the market as you are or react as quickly to the changing language.

Snagging a Market Position Early:
When a friend recommended I read the TrustRank research paper in February of last year I knew it was going to become an important idea (especially because that same friend is brilliant, helped me more ways and times than I can count, and was the guy who came up with the idea of naming the Google Dances).

I read it and posted a TrustRank synopsis. In addition to trying to build a bit of linkage for that idea I also ensured that I bought that keyword on AdWords. Today I rank #1 in Google for TrustRank, and I still think I am the only person buying that keyword, which I find fascinating given how many people use that word and how saturated this market is.

Buying AdSense Ads

Buying Ads Creates Content:
If your ads are seen on forums people may ask about your product or brands. I know I have seen a number of threads on SEO forums that were started with something like I saw this SEO Book ad and I was wondering what everyone thought of it. Some people who start talking about you might not even click your ads.

Each month my brand gets millions and millions of ad impressions at an exceptionally reasonable price, especially when you factor in the indirect values.

Appealing to an Important Individual:
I have seen many people advertise on AdSense targeting one site at a time, placing the webmaster's name in the ad copy. It may seem a bit curt for some, but it is probably more likely to get the attention of and a response from a person than if you request a link from them.

Ads are another type / means of communication.

Appealing to a Group of People:
I get a ton of email relating to blogs and blogging. And in Gmail I keep seeing Pew Internet ads over and over and over again. Their ads range from Portrait of a Blogger to Who are Bloggers?

Going forward they will have added mindshare, link equity, and a report branded with that group of people. When people report on blogging or do research about blogging in the future the Pew report is likely to be referenced many times.

Selling AdSense Ads

Don't Sell Yourself Short:
Given the self reinforcing nature of links (see Filthy Linking Rich) anything that undermines your authority will cause you to get less free exposure going forward. So you really have to be careful with monetization. If you do it for maximal clickthough rate that will end up costing you a lot of trust and link equity.

There are other ways to improve your AdSense CTR and earnings without costing your credibility and authority.

More tips:

Don't Monetize Too Early:
Given the lack of monetization ability of a new site with few visitors and the importance of repeat visits in building trust and mindshare you don't want to monetize a new site too aggressively unless it is an ecommerce type site. It is hard to build authority if people view your site as just enough content to wrap around the AdSense.

Spam, Footprints, & Smart Pricing:
In the past search engines may have discounted pages that had poison words on them. Search is all about math / communication / patterns.

If your site fits the footprints of many spammy sites then your site might be flagged for review or reduced in authority. MSN did research on detecting spam via footprints, and link spam detection based on mass estimation shows how power laws could make it easy to detect such footprints.

Graywolf recently noted that landing page slippage may be an input into landing page and site quality scores for AdWords ad buyers. Google could also use AdSense account earnings or AdSense CTR data to flag sites for editorial reviews, organic search demotion, ad payout reduction, or smart pricing.

Venture Capital Becoming Irrelevant to the Web?

Oct 30th

I recently got my first venture capital investment request for this blog, which, of course, I turned down. Nothing wrong with VC, of course, other than it isn't a good fit for niche publishing. I generally hate meta blogging stuff, but these 3 quotes are generally all saying the same thing from slightly different angles, which is quite important when you consider the backgrounds of the different sources.

From a VC blog: The Economy of Abundance

The Economy of Abundance allows business owners to defer choices to the end users. What better way to find out what consumers want than to give them everything and see what they actually buy. That is the paradigm of abundance. Why get your news programmed by CNN.com when you can have your news bubble up from the collective wisdom of end users at Newsvine or Reddit? Why get your television programmed by CBS when you can leverage the collective wisdom of the web to find great shows like Lonelygirl15 or Ask a Ninja? No longer will the success or failure of content be dictated solely by the Economy of Scarcity (e.g. Walmart). Rather, it will be dictated by the will of the consumers, as empowered by the Economy of Abundance.

From an entrepreneur who grew a huge business without funding: My Vision of where the web is going.

I think that VC’s will start to wake up and realize that Ajax is a feature and not a product, at the same time how are 100-1000 or so VC funded companies going to compete with a couple of hundred thousand webmasters who have created sites wanting a piece of the action? Many of these webmasters would be perfectly happy with $100/month. But if even if 1 in a 1000 of those adsense driven sites is very successful your entire industry could be screwed. Just look at online dating.

From the owner of a leading tech publishing company: Search Startups Are Dead, Long Live Search Startups

In my talks on Web 2.0, I always end with the point that "a platform beats an application every time." We're entering the platform phase of Web 2.0, in which first generation applications are going to turn into platforms, followed by a stage in which the leaders use that platform strength to outperform their application rivals, eventually closing them out of the market. And that platform is not enforced by control over proprietary APIs, as it was in the Windows era, but by the operational infrastructure, and perhaps even more importantly, by the massive databases (with network effects creating increasing returns for the database leaders) that are at the heart of Web 2.0 platforms.

Platforms like Amazon's S3, Google AdSense, and Google's Custom Search Engine allow passionate people to keep costs low, automate business models, and fund the growth of accidental business models.

As...

the need for venture capital goes down daily for those who can create good passion based ideas. You are not going to build a Google without some funding, but as long as you consider your cost structure from the start you do not need to try to act like Google.

Each additional passion driven amature website makes search more relevant and cuts the publishing market into more pieces. Traditional media companies had to rely on their region based monopoly market position to have a large profit margin, but given the distributed nature of the web is the traditional business financing structure going to even remain relevant in many markets?

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