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What: Despite the fact that Hispanics have adopted e-commerce at a faster pace than the general market, marketers are struggling to effectively target the demographic on e-commerce platforms and lack effective measurement tools for conversion and attribution.
Why It Matters: Hispanics as a whole represent $1.5 trillion in annual spending power, but few companies have proactively targeted them in the e-commerce realm. As shoppers increasingly head online to make purchases, some in the industry are predicting a “Hispanic targeting renaissance.”

Today there are 55 million Hispanics with $1.5 trillion in annual spending power in the United States. They skew younger than your average demographic (80 percent are Millennials or younger), are digitally savvy and love shopping online after comparing prices and doing their research.

E-commerce in general is picking up steam across the country as people abandon physical stores in favor of the convenience of shopping online. According to a according to a report from the Grocery Manufacturers Association, in 2018, online sales of CPG products will hit $35 billion, up from $8 billion in 2013. And a Univision study found that Hispanics are a driving force in the adoption of online grocery shopping: 50 percent of Hispanic shoppers (and 60 percent of Millennial Hispanics) have bought a grocery item online in the past year, versus 40 percent of the general US market.

Now, marketers must untangle the behavior and preferences of an increasingly diverse demographic, and master the art of attribution and conversion across a purchasing journey that can involve multiple devices on and offline.

Get Ready for a Hispanic E-Commerce Renaissance

Lee Vann, the founder and director of Hispanic marketing agency Capture Group, emphasized that marketers should not be surprised that Hispanics are active on e-commerce sites, “as they tend to be more active across most Internet activities.” The surprising thing is that until now, “few companies have proactively targeted Hispanics via e-commerce, despite a clear opportunity,” Vann said.

Vann suggested that we may be on the brink of a Hispanic e-commerce renaissance, as retailers like Amazon increase their offerings for Hispanics. As the big players throw their hats in the ring, Vann suggested that we should “look to others to follow.”

Few companies have proactively targeted Hispanics via e-commerce, despite a clear opportunity.

Katie Thomas, a Regional Manager at Bush Brothers, asserted that “large retailers are doing a better job of segmenting stores based on demographics (Latino, African American, etc.),” but that “it is one thing to identify these stores but another to actually market different products in these stores to meet consumer’s needs.” According to Thomas, “the retailers that are doing this will win in the marketplace.”

E-Commerce a ‘Double-Edged Sword’ for Attribution and Conversion Models 

Some would assume that the increasing popularity of e-commerce among Hispanics means that marketers should have a wealth of data points from which to collect insight on their preferences and behavior. But Vann warned that “e-commerce can be a double edged sword when it comes to attribution and conversion models.”

Cookies, for example, are one of the most popular tools for tracking consumers’ purchasing journey. However, data has revealed that they are not always effective. According to Nielson OCR Norms, 58 percent of cookie-based measurement is overstated, targeting in cookie-based measurement is only 65 percent effective, and 12 percent of conversions are missed with cookie-based measurement.

Brands shouldn’t be timid to drive consumers to e-commerce sites with cultural relevant and/or in-language advertising.

What’s more, in a world where shoppers often start their journey online and end it offline or on a different device, it’s hard to know whether the people looking at products online are actually buying. Last-click attribution models ignore the fact that many shoppers follow a windy path involving different devices and visits to physical stores before making an online purchase. “Marketers must look across the Omnichannel path to purchase and ensure they capture the impact of the digital channel on sales that may have started online but ended offline,” Vann said.

Marketing strategist and consultant Daniel Villaroel emphasized that in this case, brands must take on the responsibility of experimenting until they get it right: “Optimization is always the responsibility of the brands to maximize sales.  It behooves them to see what works and what doesn’t work.”

He continued: “Brands shouldn’t be timid to drive consumers to e-commerce sites with cultural relevant and/or in-language advertising.” He added that instead of worrying about which language Hispanics are more comfortable speaking, brands should “test, see what works and optimize.”

Brands Struggling to Implement Measurement Tools Effectively 

It isn’t that brands are lacking measurement tools — it’s that they themselves are not confident that they are using them correctly.

Bush Brothers’ Thomas admitted that brands are still grappling with some of the most basic aspects of understanding Hispanic consumer behavior. “Bush uses measurement tools on our key brands but we have not done a good job of utilizing these when it comes to the Hispanic Shopper,” Thomas said.

While location-based data is an effective tool for getting Hispanics inside a physical store, brands need more when it comes to e-commerce since they must put extra effort into understanding what specific products Hispanics want. Thomas elaborated: “Large retailers are doing a better job of segmenting stores based on demographics (Latino, African American, etc.), but it is one thing to identify these stores and another to actually market different products to meet consumer’s needs,” said Thomas.

This turns into a complicated task when one considers that Hispanic shopping patterns vary greatly based on factors like age and assimilation level. According to a recent report from ThinkNow Research, nearly a quarter of Bicultural Hispanics say they would go to another store to purchase their favored brand, while only 18 percent of less acculturated Hispanics said the same. That seven-point difference cannot be ignored when marketers are developing Hispanic e-commerce targeting campaigns.

For some marketers, it may start with accepting what they don’t know. Think Hispanics are more loyal across the board? Think again. The same report by ThinkNow Research found that less acculturated Hispanics — those that have not fully assimilated into American culture —  are no more brand loyal than other segments. Bicultural Hispanics — those who are generally first  or second-generation Americans who identify with both the U.S. culture and their Hispanic heritage — are considered more loyal across several CPG categories.

Targeting: ‘Not Doing Anything is the Primary Issue’

tech.infocustechnologiesOne thing is certain: this is a hugely powerful demographic, and retailers and brands must find a way to capitalize on the fact that Hispanics are making e-commerce a regular feature in their shopping routines.

According to Villarroel, “not doing anything is the primary issue,” and that despite the fact that we are in the age of digital, brands are not delivering “micro-targeted content that’s meaningful,” and “sometimes content is still served up as a one size fits all.” This means that retailers must aid brands in forming an accurate picture of the people visiting their e-commerce sites.

The savviest marketers will make Hispanic e-commerce part of their long term plans and ensure that their products are presented in a culturally relevant way.

Vann added that to connect with this attractive demographic, brands will have to come ready with “Spanish language product information and meta data, culturally relevant imaging and messaging, and proactive marketing to drive sales.”

Brands looking to drive Hispanic e-commerce sales must start with forming a more complete picture of Hispanics, not just as consumers, but as people whose different experiences and cultures give shape to their decisions. “The savviest marketers will make Hispanic e-commerce part of their long term plans and ensure that their products are presented in a culturally relevant way,” Villarroel said.

Join us at PORTADA Mexico!

stacey_abreuHispanic Digital Agency Captura Group has hired Stacey Abreu, until recently MD Multicultural at Mindshare. Abreu will have the position of Managing Director and be based in New York.

Ad Agencies are positioning themselves for 2016 as the end of the year approaches. One major announcement, we just learned from Captura Group, is that Stacey Abreu, a major executive until recently at Mindshare, will now be part of San Diego headquartered Digital Agency Captura Group. “As media and technology continue to converge, Stacey brings a unique skill set to Captura Group that will result in innovative solutions for our clients to reach Hispanic consumers across digital channels.” said Lee Vann, Co-Founder and Chief Strategy Officer of Captura Group.

“We are thrilled to have Stacey in our team and are confident that she will bring best-in-class solutions to drive growth for our clients.” Abreu has over 12 years experience leading large-scale multicultural and total market communications, media and Hispanic digital initiatives for companies including Unilever, Kimberly Clark, Kraft, Bacardi, ESPN, ampm and Boehringer Ingelheim.

As media and technology continue to converge, Stacey brings a unique skill set to Captura Group that will result in innovative solutions for our clients to reach Hispanic consumers across digital channels.

Previously, Stacey was Managing Director Multicultural for Mindshare where she oversaw over $70MM in annual media spend and managed a team across New York, Chicago and Los Angeles.

Captura Group provides Hispanic digital strategic and creative services for Kellogg’s, Unilever, Allstate, Bimbo Bakeries, La Costeña, Jumex and others. Abreu will be managing Captura’s growing business by bringing innovative solutions that help Captura clients reach Hispanics across channels.

Check out: Stacey Abreu on the Growth of Hispanic Advertising

192ef6b2e23318f94b178a91f6760abfIn the below article Lee Vann, Founder and CEO of Hispanic Digital agency Captura Group, details the evolution of the Facebook Hispanic Affinity Segment and notes that the latest update increases the segment to more than 29 million Hispanics.

In November 2013, Facebook announced the launch of their Hispanic segment to allow brands to better target Hispanics on Facebook. In April 2014, they improved the segment by allowing marketers to target Hispanics by language preference.

Today, Facebook has given brands 2 million more reasons to target Hispanics by expanding the Hispanic affinity segment from 26.7 million to 29.1 million.

Screen Shot 2015-09-23 at 12.29.37 PM

Not only did Facebook increase the number of Hispanics in their Hispanic affinity segment, they also changed the composition of the segment from a language preference perspective. Prior to this update, Facebook reported that the Hispanic segment consisted of the following language sub-segments:

  • 10 million Spanish dominant (38%)
  • 9 million English dominant (35%)
  • 7 million Bilingual (27%)

Today, the sub-segments have shifted dramatically with a higher number of users identified as Spanish dominant and less as English dominant.

  • 14 million Spanish dominant (48%)
  • 7 million English dominant (24%)
  • 8 million Bilingual (28%)

By all accounts – and certainly what we’ve experienced with our clients – Facebook’s Hispanic affinity segment has been a huge success, with many brands increasing their investment in Facebook advertising to get their messages in front of Hispanics. We applaud Facebook for continually improving the ability to reach U.S. Hispanics and we look forward to seeing even more ads, en español, targeted at this growing audience.

Lee Vann is the co-founder of Captura Group, an award-winning Hispanic digital agency with full-service bilingual capabilities.

Lee Vann founded Captura Group in 2001 to help clients reach online Hispanics in ways that make sense.  He has led the agency on the cutting edge of digital and content marketing for over a decade, providing solutions for top-tier clients in a variety of sectors. He is a contributor to Media Post’s Engage Hispanics blog, wrote the chapter on Hispanic digital marketing in M. Isabel  Valdés newest book, Win! The Hispanic Market and is a frequent speaker at Hispanic and digital marketing conferences.  Prior to founding Captura Group, Lee launched and served as VP of L90 Latino, the Hispanic division of the publicly traded Internet advertising company L90. Lee holds a B.A. in Economics from the University of California Berkeley and a M.B.A. from the University of Southern California with a concentration E-Commerce. Born in Mexico City, Mexico, Lee is bilingual and bicultural.

What: The La Costeña and Jumex brands, in partnership with Captura Group, have launched a new web and social media presence focusing on the true essence of Mexican cuisine and food products. Mexicorico.com targets both US Hispanic consumers and general market foodies and showcases traditional and contemporary Mexican recipes featuring La Costeña and Jumex products as well as associated cooking tips, ideas, and inspiration.
Why it matters:  The new website is an interesting example of Content Marketing in the food category and will also be supported by a paid media campaign and in-store activations.

mexico_rico_logoThe La Costeña and Jumex brands, through its U.S. importer  and distributor Vilore Foods, have partnered with Captura Group, a Hispanic digital agency, to launch  Mexicorico.com, a new bilingual digital platform showcasing recipes and tips focused on the true essence of Mexican cuisine and food products. Lee Vann, Founder and CEO of Captura Group tells Portada that the bilingual approach was chosen as “the site targets both U.S. Hispanic consumers and general market foodies. Targeting both U.S. Hispanic consumers and general market foodies, Mexicorico.com showcases traditional and contemporary Mexican recipes featuring La Costeña and Jumex products as well as associated cooking tips, ideas, and inspiration.

Content Marketing Platform

Over the past months, Vilore Foods and Captura Group have collaborated on creating a holistic digital initiative that is focused on the true essence of Mexican culinary arts and food products from a contemporary lifestyle perspective. “Our approach with Mexicorico.com is to educate consumers about genuine Mexican cuisine and inspire them through recipes and tips.  We are proud to have created a comprehensive, bilingual digital communication platform that is scalable and adaptable to the evolving Mexican food and beverage landscape for consumers and retail customers alike,” says Vann. Captura Group collaborated with Vilore Foods, the US distributor of La Costeña and Jumex, on the strategic planning and digital execution of Mexicorico.com, including consumer insights, brand definition, responsive website design and development, social media strategy and influencer and content marketing. Captura Group is also supporting Vilore Foods from a media perspective and MexicoRico.com will be supported through an integrated marketing strategy that includes paid digital and in-store activations in partnership with key retailers.

La Costeña and Jumex are well known brands in Mexico and as a result very popular among Mexican Americans.

Strong Brand Recognition for Mexican Americans

La Costeña and Jumex are well known brands in Mexico and as a result very popular among Mexican Americans. MexicoRico.com leverages this equity to connect with both Mexican Americans who know the brand and general market consumers who are looking for authentic Mexican recipes and cooking tips.

As more food companies realize that Hispanic consumers are critical for growth, many are turning to digital channels to educate Hispanic consumers about their products in order to drive brand awareness, affinity, and sales. Recent studies from Nielsen and Google indicate that food related searches among U.S. Hispanics are up 70% and the number one thing US Hispanic women search for online are recipes.

Vilore Foods is based in San Antonio, TX and markets the La Costeña, Jumex, Congelli, and Pronto brands in the United States and Canada. It also maintains Strategic Distribution agreements with Procter & Gamble, Mead Johnson Nutrition, and Genomma Lab USA. Founded in 2001, Captura Group is an Hispanic digital agency that creates and manages Hispanic digital programs for Vilore Foods, Kellogg’s, Unilever, BIMBO, Allstate and other brands.

Join us at PORTADA Mexico!

192ef6b2e23318f94b178a91f6760abfLee Vann is the founder and CEO of hispanic digital agency Captura Group.

 Recently Portada asked a question that has been on the minds of content marketers everywhere: Will marketer owned media stretch consumer trust to a breaking point? The specific case examined was of Kellogg’s Días Grandiosos, noting that for the first time in its seven-year history, the Portada award for Top Content Provider to Hispanic Audiences was won by a brand-owned platform instead of a traditional media company.

Kellogg’s and Captura Group are indeed proud of that award, and agree that it signals a shift in the way brands communicate with consumers and where consumers turn for information online. Like any successful marketing strategy, you must begin with the consumer. What is important to her, beyond what she can buy? What entertains her? And most importantly: Why should she listen to you and engage with you?

Below are three ways to foster consumer trust with content marketing:

Relevancy

Disillusioned by the barrage of digital advertising they come across each day, the digital consumer craves relevancy. We spend a lot of time talking about cultural relevance when it comes to marketing to Hispanics, but it is never more important as it is in the content marketing space. Creating relevant and engaging content that serves to educate, entertain, empower and inspire rather than simply sell, establishes credibility and trust in the long run.

Originality

To get her attention, you must be original. Días Grandiosos con Kellogg’s, for example, connects with Hispanic families through stories about food, but also covers topics on family and culture through a journalistic approach that features real Latina women.  This unique approach is fresh and surprising and helps capture her attention, allowing for a deeper connection that is critical to build trust.

Authenticity

Taglines sell products; content sells brands. Moving away from traditional ad-speak is essential to leveling with the consumer in an authentic way and informing without sales pressure. As Portada mentioned, journalists have become a key component in this communication shift. We’ve examined the ways journalists give brands a content marketing edge on our blog, by being able to tell real stories that resonate with consumers while driving brand objectives in an authentic way.

Today’s digital consumer is smart, socially active, and weary of the traditional sales pitch. Content marketing serves to inform, educate and entertain, and when done well, brands may be rewarded with the most valuable asset: consumer trust.

Lee Vann founded Captura Group in 2001 to help clients reach online Hispanics in ways that make sense.  He has led the agency on the cutting edge of digital and content marketing for over a decade, providing solutions for top-tier clients in a variety of sectors.He is a contributor to Media Post’s Engage Hispanics blog, wrote the chapter on Hispanic digital marketing in M. Isabel  Valdés newest book, Win! The Hispanic Market and is a frequent speaker at Hispanic and digital marketing conferences.  Prior to founding Captura Group, Lee launched and served as VP of L90 Latino, the Hispanic division of the publicly traded Internet advertising company L90. Lee holds a B.A. in Economics from the University of California Berkeley and a M.B.A. from the University of Southern California with a concentration E-Commerce. Born in Mexico City, Mexico, Lee is bilingual and bicultural.

Yesterday morning, during a Time Warner investor meeting, Home Box Office Chairman and CEO Richard Pepler said that HBO will launch a stand-alone, over-the-top service that would allow consumers to watch HBO content without having a cable subscription – and let HBO reap what he characterized as hundreds of millions of dollars in additional revenue.

hbo latinoHe said HBO will sell stand-alone services in the United States and two other countries, with the aim of expanding eventually to every nation that it currently reaches via cable.

Whether HBO Latino will be part of this initiative or whether either of the two non-U.S. launch countries will be in Latin America are still to be determined. A spokesperson for HBO Latino told Portada, “At this time we are not elaborating beyond the statement that was issued today.”

Overall I think that a streaming HBO Latino has potential. We know that Hispanics are entertainment-hungry and digitally savvy, and brands are eager to engage with them through new channels.

Karina Dobarro, vice president and managing director of multicultural brand strategy at Horizon Media, notes that HBO will not necessarily include ads in its over-the-top offering; it may use a Netflix-like subscription model instead

But let’s play what-if, as long as HBO is thinking about shaking things up

Anel Hooper, associate media director for Bromley Communications, thinks this is a definite win for consumers. “There are a lot of cord-cutters out there. They’re trying to find other sources to watch television programs,” she says. While Netflix doesn’t include advertising, she points out that Hulu does – and advertising could be part of HBO’s plan to earn millions more dollars.

Maria Lopez Knowles
Maria Lopez Knowles

This move absolutely makes sense for consumers, and therefore for HBO, according to Maria Lopez-Knowles, CMO of Pulpo Media. She says, “Fragmented media and distributed content is the new reality, especially among Hispanics and the Hispanic Millennial in particular. Consumers now own both the remote control and the Programming Executive title. They choose to consume content and stream programming when they want to and in their own device of choice.” Based on this, she adds, advertising on an HBO OTT service makes perfect sense. “It’s a great idea whose time has come,” she says. And, of course, it makes even better sense for advertisers that want to reach highly mobile Hispanics.

Whether Bromley recommends advertising on streaming video to clients depends on the demographic they’re trying to reach, according to Hooper. “If the target demographic is using their smartphones and tablets and streaming, then yes, we have recommended that to our clients.”

Lee Vann, Captura Group
Lee Vann, Captura Group

Lee Vann, CEO of Captura Group, says, “Overall I think that a streaming HBO Latino has potential.  We know that Hispanics are entertainment-hungry and digitally savvy, and brands are eager to engage with them through new channels.  They key will be for HBO to curate and produce content that appeals to Hispanics in a relevant and authentic way.  If they can accomplish this, Hispanics will watch, and brands will follow.”

Not all advertisers may be ready to jump on board an over-the-top HBO, Lopez-Knowles says. “But the more progressive advertisers are certainly starting to understand that we’ve entered a brave, new world.”

A recap of major news on the marketing and media front from around the web compiled by Portada Digital Media Correspondent Susan Kuchinskas.

Dennys  Denny’s “Likes” Hispanics

The restaurant chain is expanding is Hispanic marketing with a dedicated Facebook page that will offer original and curated content. Denny’s vice president of marketing John Dillon told Nation’s Restaurant News that, while the company actively reaches Latino consumers in a variety of ways, in both English and Spanish, ” So instead of taking a general-market idea and pushing it in the same way to Hispanics, why not create content targeted more directly at them? That should get better engagement.”

At the same time, Denny’s has found that Hispanics like the same mainstream grub that general-market consumers do – with the occasional addition of chorizo.

Pandora Beats Hispanic Streaming Sites

pandora mexicanWe knew that Pandora was popular with Latinos, but this popular? According to ComScore’s June numbers, 25 percent of Pandora’s total 76.4 million active monthly unique visitors are Hispanic. This makes it the top streaming music site for Hispanics – beating Univision Digital’s 10.5 million monthly uniques.

Billboard notes – as we have before – that Pandora has carefully created channels to appeal to a wide variety of tastes, with subgenres for Latin, Puerto Rican and Mexican. Meanwhile, Pandora’s strength in mobile appeals to highly mobile Hispanics.

Marketers Miss Out on Digital Hispanics

Lee Vann, Captura Group
Lee Vann, Captura Group

Lee Vann of Captura Group analyzed Adage’s latest Hispanic Fact Pack – and found that media buyers are under-spending on digital to reach this group. He points out that, while Hispanics over-index for all kinds of digital media, last year marketers invested only 7 percent of their Hispanic budgets on digital. Vann wonders whether the current buzz about the total market approach has led advertisers to think – or hope – they can reach Hispanics with general market advertising. He begs to differ.

Enough of the Hot Latinas, Please

PARLUX FRAGRANCES, LTD SOFIA BY SOFIA VERGARAFinally, here’s an opinion from an actual Hispennial. Jose Gutierrez, a staff writer for San Diego State University’s Daily Aztec, complains about the stereotypical Latino characters in TV and movies, those of the hot blood, exotic features and Spanglish. He writes, “As people, we are far more than stereotypes. As humans, we deserve to be represented as such. It goes without saying the media influences and shapes our perceptions about the world. Seeing Latinos represented almost exclusively as the aforementioned stereotypes is incredibly damaging and doesn’t go without negative repercussions.”

On the other hand, Modern Family, home to possibly TV’s best-loved Latina, has turned Sofia VErgara into a major star complete with red-carpet coverage and endorsement deals. Last year, Vergara defended the character, saying that while everyone is different, Gloria has aspects of women she knows.

What do you think is the best way to represent US Latinos?

CPG Companies are the main players in content marketing in the Hispanic market. A major CPG company, Kellogg’s, recently launched a new Spanish language content marketing program anchored in the DiasGrandiosos website as well as on Facebook and Pinterest. The target is the Latina woman and her family. What are the content challenges for a Hispanic content marketing program? What are the main objectives and the resources that have to be put behind it? We talked to Christopher Rivera, associate director of Multicultural Brand Marketing at  Kellogg’s to find out.

Associate Director, Brand Marketing - Multicultural at Kellogg Company
Christopher Rivera, Associate Director, Brand Marketing – Multicultural at Kellogg Company

Días Grandiosos is a new digital platform featuring recipes, tips, articles and original content designed for Latinas and their families. The editorial concept evolves around “Ama” (Family), “Vive ” (Health, Wellness), “Goza” (Fun & Entertainment).  Participating Kellogg’s brands include Cheez-It, Corn-Flex, Eggo, Frosted Flakes, MiniWheats and Apple Jacks. For now Kellogg’s has chosen the Spanish-language for the content marketing outreach.  “Currently, Dias Grandiosos is in Spanish-only. However, we have considered offering certain content pieces, key features, and other website elements in English to satisfy the specific needs of bilingual Hispanic consumers,” Rivera notes.  San Diego based Captura Group concepted and created the “Días Grandiosos con Kellogg’s brand”, including its digital extensions.

Content Production and Amplification

According to Rivera, the Dias Grandiosos website is updated several  times per month with new content that is timely and relevant. “At Kellogg , we have a Multicultural Program Brand Manager setting the overall content strategy with the Dias Grandiosos editorial team and shepherding it through the brand marketing organization. The DiasGrandiosos editorial team consists of Content Strategists, Editors, Writers, and Community Managers as well as Art Directors, Visual Web Designers and Producers bringing the content to life on the web and across social and other digital channels. In addition to the core editorial team, Dias Grandiosos leverages Captura Group’s network of bloggers and social influencers to amplify our content offering.”

We are using online video content as part of our media buy to drive awareness for participating brands.

Get them to buy

Ultimately content marketing efforts have the final goal of having consumers buying the product. That is where
Kellogg’s Family Rewards program comes in . Kellogg’s Family Rewards is a loyalty program that rewards people for buying Kellogg products and offers valuable coupons and promotions from the brands they know and trust. Dias Grandiosos supports and amplifies Kellogg Family Rewards through culturally relevant content and integrated digital touch-points including the website, social, and email.

Paid Media to support the program

The Dias Grandiosos platform is supported through an integrated digital media program to build awareness of the brand and its associated offerings by reaching Hispanic women in environments where they are; as well as Facebook media to engage with them around content offerings that are dear to their hearts. Currently we are using online video content as part of our media buy to drive awareness for participating brands.

The results so far

Dias Grandiosos just launched so it is still early to talk about the results:”Given the recent website launch, web audience numbers are not currently available,” says Rivera.” “We are proud to share that the Dias Grandiosos community on Facebook totals over 96,000 fans (as of April 28, 2014).”

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