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Apple increases developer revenue in iAd to 70%

post #1 of 39
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Apple has announced to developers that it has increased developers' share of revenue in iAd from 60 percent to 70 percent.

The announcement came on Apple's official developer center in a brief statement. It means that developers can earn an extra 10 percent share from using Apple's own mobile advertising network, dubbed iAd.

Quote:
Developer Advertising Services Agreement Update

We have made the following changes to the Developer Advertising Services Agreement for the iAd Network, effective immediately.

The revenue share for the iAd Network is now 70% to the Developer.

Apple's iAd service has struggled since it launched in 2010. In February, one report claimed that Apple was considering a number of changes in an effort to rekindle interest in the mobile advertising platform.

Options that were on the table for Apple at the time were reducing the minimum campaign amount, adjusting its fees, and increasing developer revenue share. The latter was officially adopted by Apple on Sunday.

Advertisers can now spend as little as $100,000 to initiate mobile campaigns, down from a $300,000 threshold that went into effect last July. The current minimum represents just a fraction of the lofty $1 million minimum when the service launched in 2010 and the $500,000 entry price from last February.

[ View article on AppleInsider ]
post #2 of 39
While clearly not Apple's most successful service I don't see any evidence that it's losing money. It looks bad but they can keep this going until they figure it out. That $1 million minimum reminded me of the $200 Burger King hamburger.

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post #3 of 39
Quote:
Originally Posted by AppleInsider View Post

Apple's iAd service has struggled since it launched in 2010. In February, one report claimed that Apple was considering a number of changes in an effort to rekindle interest in the mobile advertising platform.

Struggled? IIRC, iAds was the #2 advertising service on mobile devices.

This site is somewhat outdated, but clearly iAds were not 'struggling'.
http://www.macobserver.com/tmo/artic..._2011_revenue/
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post #4 of 39
Quote:
Originally Posted by jragosta View Post

Struggled? IIRC, iAds was the #2 advertising service on mobile devices.

This site is somewhat outdated, but clearly iAds were not 'struggling'.
http://www.macobserver.com/tmo/artic..._2011_revenue/

Any service or product of Apple that isn't #1 by a mile is now considered struggling. How times have changed...
post #5 of 39
Quote:
Originally Posted by jragosta View Post

Struggled? IIRC, iAds was the #2 advertising service on mobile devices.

This site is somewhat outdated, but clearly iAds were not 'struggling'.
http://www.macobserver.com/tmo/artic..._2011_revenue/

That is a research company projecting why they think will happen in 2011.

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post #6 of 39
It's hard for advertisers to commit to a service that is expensive and isn't cross-platform. Maybe Apple should expand iAds to the Mac and perhaps Safari since iAds is HTML5 based.

Ads is Google's bread and butter, if Apple wants to go thermonuclear on them, why not go after and eat their food?
post #7 of 39
Any Apple service or product that isn't wildly successful is considered struggling if not a complete failure by the media. Everything that Apple does has to be near perfect to get positive press. Apple hsas clearly made some mistakes with iAd or else it wouldn't have had to been constantly adjusted to draw clients. I think this is mainly due to the weak economy, but I might be wrong. I'd honestly like to see how it compares with what Google is doing to see if the service is doing as badly as is being mentioned. \
post #8 of 39
Quote:
Originally Posted by Constable Odo View Post

Any Apple service or product that isn't wildly successful is considered struggling if not a complete failure by the media. Everything that Apple does has to be near perfect to get positive press. Apple hsas clearly made some mistakes with iAd or else it wouldn't have had to been constantly adjusted to draw clients. I think this is mainly due to the weak economy, but I might be wrong. I'd honestly like to see how it compares with what Google is doing to see if the service is doing as badly as is being mentioned. \

Compared to Google? Google kinda own the ad market don't they? Hell, I'm willing to bet the ads i see on APPLEINSIDER.COM are by google.

And to be fair, the media is that way with anyone. Google's growth in tablet market share is amaziing considering it started at ZERO just a year and half ago. But still its looked at as a complete disaster. Same goes for Microsft. Vista is labelled as a disaster, even totally ignoring the fact that it sold better than any other OS BY MILES except windows XP was just more popular. Sony has sold about 60 million PS3's but the media constantly say its a horrible failure cause it isn't number one, its behind the Wii. Same for the 70 million or so PSP's that they sold. Media calls it a disaster.

That's just how the world works in the media, if you are not number one, you have failed. Its nothing SPECIAL to Apple products.

But in the end...WHO CARES???!!!! ITS ADS PEOPLE!!!!!!

Who among us LIKE to see ads? *chirping**tumble weed*
So then why would we care who wins the ad war? Its just more ads that everyone hates anyway.
post #9 of 39
Quote:
Originally Posted by elroth View Post

Any service or product of Apple that isn't #1 by a mile is now considered struggling. How times have changed...

Psychologically, sure. Technically, anything that isn't a loss is a success.

But are they making it work well? It doesn't sound like it? Are they closing in on AdMob? It doesn't sound like it.

This is the somewhat of the reverse of another poster saying RiM's PlayBook was a success because it was #3 among tablets. It's not only a market failure but a financial one, too.

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post #10 of 39
The less ads the better. The screen is small enough without that garbage infiltrating my paid apps/subscriptions. I can't stand this ad nuisance.
post #11 of 39
Quote:
Originally Posted by Wurm5150 View Post

It's hard for advertisers to commit to a service that is expensive and isn't cross-platform. Maybe Apple should expand iAds to the Mac and perhaps Safari since iAds is HTML5 based.



The problem with iAd is it really wasn't rolled out in an Apple like fashion. Who is Apple trying to serve through iAds? Namely, its developers by giving them another way to make money. To assist developers to do this, Apple needs to make the platform appeal to advertisers. This means bringing the ads to a large audience for a good price.

Apple, however, 1) made the platform difficult to design ads for (it has since improved this), and 2) charges a huge premium (it is trying to fix that).

If I were Apple, I would make the service cross platform. Apple isn't going to keep developers for designing for Android so it might as well make the developers happy and make some money in the process. Further, Apple can then easily advertise its products to other platforms in a low cost fashion. For instance, Apple could easily push out ads to other platform and only pay the developer the thirty percent. Currently, I suspect many advertisers want to go with a platform that reaches beyond APple's ecosystem.
post #12 of 39
April Fool's ?
post #13 of 39
Quote:
Originally Posted by Wurm5150 View Post

It's hard for advertisers to commit to a service that is expensive and isn't cross-platform. Maybe Apple should expand iAds to the Mac and perhaps Safari since iAds is HTML5 based.

While your initial premise makes sense, the iPhone customer represents a wealthier than average market segment. If I want to focus my marketing to that affluent segment, then I would choose to do that. Android users, for example, are a much broader kind of market that hardly ever will pay for apps and far less likely to buy my high-end products.
post #14 of 39
Quote:
Originally Posted by iSheldon View Post

The less ads the better. The screen is small enough without that garbage infiltrating my paid apps/subscriptions. I can't stand this ad nuisance.

Apparently you don't know that iAds are only found on FREE aps.
post #15 of 39
Quote:
Originally Posted by TBell View Post

The problem with iAd is it really wasn't rolled out in an Apple like fashion. Who is Apple trying to serve through iAds? Namely, its developers by giving them another way to make money. To assist developers to do this, Apple needs to make the platform appeal to advertisers. This means bringing the ads to a large audience for a good price.

Why is it OK when people advocate more ads. If I pay for an app it better not have any ads in it. I don't BUY any software program where the developer believes making more than the price of the program, at my expense. Either charge upfront with the margin you believe your IP is worth or give it away free and make money on ads. I won't be using an app with ads in it but I'm sure if it were free people will use it and accept the ads.

Quote:
Originally Posted by TBell View Post

Currently, I suspect many advertisers want to go with a platform that reaches beyond APple's ecosystem.

Actually, I'm sure advertisers would rather you wear a tattoo on your forehead. Advertisers probably were amazed they got away with designer clothes. They can't seem to get the brand big enough though. BTW: I don't buy them either, that is unless they are willing to pay me to market their wares.
post #16 of 39
Quote:
Originally Posted by jragosta View Post

Struggled? IIRC, iAds was the #2 advertising service on mobile devices.

This site is somewhat outdated, but clearly iAds were not 'struggling'.
http://www.macobserver.com/tmo/artic..._2011_revenue/

Also everyone has to understand that iAD is only on the iPhone and i devices, there is no android or windows version of this software, unlike googles system which is on both android and the iPhone
post #17 of 39
Quote:
Originally Posted by Wurm5150 View Post

Ads is Google's bread and butter, if Apple wants to go thermonuclear on them, why not go after and eat their food?

They quietly are. It is well known that apple has invested in three different mapping companies and is already hurting google with siri bypassing ads on web pages that it accesses, there also collecting data on mapping services and I imagine there will come a day that google will not be used in maps or any part of the iDevices. That is scary for google since the iDevices represent 2/3rds of googles mobile revenue from ads if not more by some accounts. Even more revenue than there own android devices. In my opinion from what I have read about it, it is not a matter of if but when.
post #18 of 39
Quote:
Originally Posted by TBell View Post

Apple, however, 1) made the platform difficult to design ads for (it has since improved this),

how have they improved this?

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post #19 of 39
Quote:
Originally Posted by Mechanic View Post

They quietly are. It is well known that apple has invested in three different mapping companies and is already hurting google with siri bypassing ads on web pages that it accesses, there also collecting data on mapping services and I imagine there will come a day that google will not be used in maps or any part of the iDevices. That is scary for google since the iDevices represent 2/3rds of googles mobile revenue from ads if not more by some accounts. Even more revenue than there own android devices. In my opinion from what I have read about it, it is not a matter of if but when.

I believe Google pays Apple quite a bit of money to keep both Google Maps and also the default search set to Google on iOS. They also don't allow Google to put ads in either of those services. Canceling those contracts most likely would have a negative effect on Apple's bottom line. They would have to come up with some persuasive rational as to how providing less robust services would improve their profitability. Cutting off those services simply to punish Google does not benefit Apple unless at the same time they can also provide a better more profitable replacements for those services.

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post #20 of 39
Quote:
Originally Posted by Constable Odo View Post

I'd honestly like to see how it compares with what Google is doing to see if the service is doing as badly as is being mentioned. \

Quote:
Originally Posted by SolipsismX View Post

But are they making it work well? It doesn't sound like it? Are they closing in on AdMob? It doesn't sound like it.

Luckily, a few days ago this site gave us some recent data points to help us compare to Google, AdMob, et al!

http://www.appleinsider.com/articles...m_android.html

For the U.S.:


That’s mobile. iAds is obviously not involved in desktop ads (nor radio, etc.) I don’t know whether those percentages are for in-app ads only, or simply as stated “mobile” ads in general including web ads. If those stats are for in-app PLUS web ads, with web ads being clearly the most common, then iAds is at a huge disadvantage in those number and yet still doing amazingly. If, on the other hand, those are in-app ads, alone, well, that’s all iAds is meant for, and it’s doing great by that metric as well.

(The only “struggle” I care about is opting out of ad networks tracking me!)
post #21 of 39
Quote:
Originally Posted by nagromme View Post

Luckily, a few days ago this site gave us some recent data points to help us compare to Google, AdMob, et al!

http://www.appleinsider.com/articles...m_android.html

For the U.S.:


Thats mobile. iAds is obviously not involved in desktop ads (nor radio, etc.) I dont know whether those percentages are for in-app ads only, or simply as stated mobile ads in general including web ads. If those stats are for in-app PLUS web ads, with web ads being clearly the most common, then iAds is at a huge disadvantage in those number and yet still doing amazingly. If, on the other hand, those are in-app ads, alone, well, thats all iAds is meant for, and its doing great by that metric as well.

(The only struggle I care about is opting out of ad networks tracking me!)

Right - so how are they 'struggling'?
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post #22 of 39
Quote:
Originally Posted by jragosta View Post

Right - so how are they 'struggling'?

If they are getting 15% on just their platform compared to Google's 24% on all the platforms AdMob supports then they clearly aren't struggling, but can we trust IDC's numbers? I've yet to see Apple boast about iAds success and seen only the changes the in minimum cost and and developer revenue which is leans toward iAds don't performing the way Apple expected.

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post #23 of 39
That's part of the reason to pay for the app and the ads get removed as a result, and sometimes they add other capabilities as well.
post #24 of 39
I think we're missing the point here. Unlike Google or Yahoo that generate the majority or at least a substantial portion of their revenue from ads, Apple generates most of its revenue from hardware.

To that end, iAds are nothing more than a tool to drive developer adoption of the iOS platform, which in turn increases the number of apps (and hopefully quality apps), which in turns leads to increased consumer desire to buy Apple's hardware products.

Therefore, whether Apple has 50% or 15% of the mobile display market is really inconsequential, since its primary purpose is to help developers monetize their free apps rather than generate increased revenue for Apple. Those same developers are free to choose any number of competing advertising platforms, and again, Apple could care less as long as they are developing for iOS.

I imagine the increased payout to developers reflects Apple's desire to drive additional adoption of the iAd platform itself in order to increase the size and scope of ad distribution, which will hopefully in turn, make iAd more attractive to major advertisers.
post #25 of 39
This is Apple we're talking about. Any news can only about why it's doomed.

Quote:
Originally Posted by jragosta View Post

Right - so how are they 'struggling'?
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post #26 of 39
Comment.

Sarcasm.

Retraction.

Moving on.

The Troll stops here.
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post #27 of 39
Quote:
Originally Posted by SolipsismX View Post

If they are getting 15% on just their platform compared to Google's 24% on all the platforms AdMob supports then they clearly aren't struggling, but can we trust IDC's numbers? I've yet to see Apple boast about iAds success and seen only the changes the in minimum cost and and developer revenue which is leans toward iAds don't performing the way Apple expected.

That's not what it says. It says Apple has 15% of ALL mobile ad revenue vs. 24% for Google. Now, clearly, Google is ahead, but Apple is clearly in the game.

Furthermore, they have far less that 15% of personal computer sales and they're clearly not struggling there. It takes more than a market share figure to say that they're struggling. So, once again, what evidence is there that they're struggling?
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post #28 of 39
Quote:
Originally Posted by jragosta View Post

That's not what it says. It says Apple has 15% of ALL mobile ad revenue vs. 24% for Google. Now, clearly, Google is ahead, but Apple is clearly in the game.

Furthermore, they have far less that 15% of personal computer sales and they're clearly not struggling there. It takes more than a market share figure to say that they're struggling. So, once again, what evidence is there that they're struggling?

1) I am not aware of Apple having an ad presence on anything but iDevices so 15% on just their own products is an impressive number.

2) That graph is noting revenue share while Apple's "far less" number in the PC typically refers to their market share. I don't know what Apple's revenue share is in the PC market but their profit share is dominate, and by a large margin.

3) The fact that are changing their rates and take in favour of advertisers and developers, and the fact they aren't crowing their iAd success to help entice more advertisers and developers to use their service eludes to them struggling.

4) I never said they are struggling just that current information points to that as the most likely scenario. So far, you have pointed to anything factual, like an SEC filing that shows they are making a significant profit.

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post #29 of 39
Quote:
Originally Posted by SolipsismX View Post

1) I am not aware of Apple having an ad presence on anything but iDevices so 15% on just their own products is an impressive number.

2) That graph is noting revenue share while Apple's "far less" number in the PC typically refers to their market share. I don't know what Apple's revenue share is in the PC market but their profit share is dominate, and by a large margin.

3) The fact that are changing their rates and take in favour of advertisers and developers, and the fact they aren't crowing their iAd success to help entice more advertisers and developers to use their service eludes to them struggling.

4) I never said they are struggling just that current information points to that as the most likely scenario. So far, you have pointed to anything factual, like an SEC filing that shows they are making a significant profit.

First, the word is 'alludes'.

Second, what makes you think that the only reason to be aggressive is if you're struggling? Perhaps they see Google as vulnerable and want to put more pressure on them.

As you know, it is unlikely that Apple will issue a statement to the SEC or anyone on the profitability of iAds - or any other product line. They just don't do that. So your conclusion that the most likely scenario is that iAds are struggling is completely without foundation.

In reality, we know that Apple has captured a significant market share in a very short time. We also know that Apple has run the app store at near break even in order to sell more iDevices. Speculation is that iAds work the same way - they are not so much interested in earning a profit from the ads as using the ads to sell iDevices:
http://www.coastdigital.co.uk/news/a...ile-ad-market/

In any event, I don't have the burden of proof. I simply stated that there was no evidence that iAds were struggling. And that's absolutely true.
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post #30 of 39
Quote:
Originally Posted by jragosta View Post

First, the word is 'alludes'.

Ouch! Can I ever live that down.

Quote:
Second, what makes you think that the only reason to be aggressive is if you're struggling? Perhaps they see Google as vulnerable and want to put more pressure on them.

It's not the only reason, but this type of change is more commonly done in business when you aren't performing the way you want to. If there growth was rapid and faster than the market I wouldn't have expected any of these changes.

Quote:
As you know, it is unlikely that Apple will issue a statement to the SEC or anyone on the profitability of iAds - or any other product line. They just don't do that. So your conclusion that the most likely scenario is that iAds are struggling is completely without foundation.

They do talk up their products and services in their events and PR reports and earnings calls. To not even question as to why Apple seems so hush on the iAds front means you're open to the possibility.

Quote:
In reality, we know that Apple has captured a significant market share in a very short time.

We don't know that. Your out of date articles that are projecting a scenario aren't proof. We need Apple to supply the proof or good research from an independent source or sources to make a sound case ether way.

Quote:
We also know that Apple has run the app store at near break even in order to sell more iDevices.

And yet we have heard about iTunes Music Store, iTunes Store, and App Store milestones constantly since their inception. Where are the iAd milestones. There is only one, from when it first launched of a commitment of $60 million which means no more than 60 customers. Not a bad start, but where is the evidence that it's grown substantially, and that it's popular and profitable to both advertisers and developers?

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post #31 of 39
Quote:
Originally Posted by sleepy3 View Post

Who among us LIKE to see ads? *chirping**tumble weed*

Me. If they're targetted and relevant and not over the top and in a free app. Apple' iAds are the best ads on mobile devices.
post #32 of 39
Apple is making nearly 2/3 of the as money that Google is competing. This looks pretty good given ads are Google's core business and competency. If this continues to grow it will attack Googles core business model. Pretty good for a newbie.
post #33 of 39
There is, in fact, more than one problem with iAds.

1) It is not cross platform, although this would be less of an issue if...
2) fill rate were as high as AdMob on iOS. It is at about 15%. However epc is higher.
3) Developers therefore keep away, or use a backup ( if iAds fails use AdMob - see the link below) and because they do...
4) Advertisers keep away hence the low fill rate, a vicious circle. Added to that
5) There is no way for very large apps to customise their advertisers on iAds, and other platforms - though not to my knowledge AdMob, do do this, Mobclix does - which would allow larger applications with millions of user to sell actual space on their apps to dedicated advertisers, which obviously earns them more than a random fill. This also means that:
6) On iAds Advertisers cant, as far as I know, target specific apps. Which they also want to do.
7) iAds is not available worldwide.

So this was never going to fly, except for small iOS only houses.
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post #34 of 39
Quote:
Originally Posted by asdasd View Post

2) fill rate were as high as AdMob on iOS. It is at about 15%. However epc is higher.

My fill-rate on iAds in the past six months has been over 50%. In the past month it's over 60%.

I have tried various ad networks. iAds has consistently beat them all by a factor of 10 in terms of revenue to developer. So using iAds results in less ads for consumers and more revenue to developers in my experience.

I currently only use one competing fall-back network (they promised to beat iAds revenue and they failed miserably so will be removed shortly).
post #35 of 39
Yes, I think it depends on the app however, and the country you are selling it to. iAds might be useful in the US, or more useful.
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post #36 of 39
iAds was a defensive play.

Does no one remember when Steve Jobs freaked about what user data the advertisers were collecting from new phones being tested on Apple's campus?

No. 1 reason, protect the privacy of Apple's customers.

Apple, to expand the desirability of iPhones, hosts free apps for free. They clearly did not anticipate that other ad networks would make so much money from their customers and their 'gift' to developers.

No. 2 reason, block spongers especially Google.

Most everyone hates advertising (except those that work in the industry), several comments above agree. Apple did not envisage consumers putting up with advertising on phones, when apps are $1 - $2 - $3 why put up with adverts? People pay for free TV shows from iTunes to avoid adverts, the model works. But mobile is not the same and some advertising (location based) is useful so Apple did iAds to put their stamp, their ethical approach, on advertising on the iPhone. Make it useful, not suck and reward the people it should.

No. 3 reason, limit advertising to that which is acceptable to Apple's customers.
post #37 of 39
Quote:
Originally Posted by Wurm5150 View Post

. . .
Ads is Google's bread and butter, if Apple wants to go thermonuclear on them, why not go after and eat their food?

This has been my thought, too. Secretive Apple is like the Pink Panther! So Apple, go unseen. Strike when least expected. Be ahead of all else's game. Be glamorous. And allow just enough rumour to be obnoxious and cause a little back tension.

Google stabbed Apple in the back. I wouldn't be surprised if Apple hasn't got cards up its sleeve that would make a migraine seem like a minor itch to Larry at Googles.

Apple is the great planner and magician. What wonderful toys does it have in its hat? Search, are you in that bountiful hat of tricks?

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post #38 of 39
Quote:
Originally Posted by mhikl View Post

This has been my thought, too. Secretive Apple is like the Pink Panther! So Apple, go unseen. Strike when least expected. Be ahead of all else's game. Be glamorous. And allow just enough rumour to be obnoxious and cause a little back tension.

Google stabbed Apple in the back. I wouldn't be surprised if Apple hasn't got cards up its sleeve that would make a migraine seem like a minor itch to Larry at Googles.

Apple is the great planner and magician. What wonderful toys does it have in its hat? Search, are you in that bountiful hat of tricks?

WEll the obvious solution is to kick all google products off iOS by default. But, lets be careful, OpenStreet map is nowhere near as good as google maps. No other search engine comes close.

Apple cant make it's customer's experience worse by using non-Google products. Well, it can but it shouldn't/
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post #39 of 39
Quote:
Originally Posted by asdasd View Post

WEll the obvious solution is to kick all google products off iOS by default. But, lets be careful, OpenStreet map is nowhere near as good as google maps. No other search engine comes close.
Apple cant make it's customer's experience worse by using non-Google products. Well, it can but it shouldn't/

I totally agree. Apple has to and usually does play its cards right. Usually, Apple puts out superior experiences. Safari on the iMac, for example, took a while to perfect and then MS gave up even updating it's browser for the Apple computer. As usual, we shall have to wait to see what wonderful toys Apple has in mind in its battle with Google.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

Reply

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

Reply
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