the 10 most important ppc kpis you should be tracking

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2 agosto, 2016

the 10 most important ppc kpis you should be tracking

Whether you’re advertising on Google Shopping, Google Ads, or Bing, here are the most important PPC KPIs for eCommerce brands. When it comes to setting and tracking your marketing KPIs, many marketers and business owners give all their attention to the usual suspects:. SEO KPIs to Know. It is a metric created by Google that tells them how relevant your ad content is, using metrics like CTR and other performance variables like landing page experience. Ads on Google or Bing can show at the very top of the search engine results page (SERP) in position 1, right underneath the next ad shown is in position 2, and so on. It’s unlikely that the performance on one indicator is the best it has ever been while others are the worst. If you want to manually check the cost of your campaign, you could multiply CPC by the number of clicks a campaign received. In particular, the 10 KPIs we'll discuss include: Qualified Leads: MQLs and SQLs; Customer Acquisition Cost (CAC) Below, you’ll find everything you need to know about KPIs. An impression occurs when a person sees your ad. If you’d like to learn about more inbound marketing KPIs you can track to better optimize your marketing strategy, or if you’re interested in an inbound marketing agency, let us know . Get our daily newsletter from SEJ's Founder Loren Baker about the latest news in the industry! You can measure conversion rate in Google Ads by dividing the number of conversions the campaign received by the total clicks. Google can’t simply give the highest bidder the first position all the time, so they determine average position based on ad rank. If you’re looking to increase their impression share you’ll have to increase your bids and/or budgets. You should use average position to provide context around campaigns and campaign reporting, but it shouldn’t be used as a target indicator. Companies that retain customers acquired via paid search longer will make significantly more revenue. Some advertisers may have more conversions in position 4 than position 1 for whatever reason. Let's dive in! Advertisers outcompete competitors for ad positions with their bid, but pay the next highest bid price. Regardless, I’m making the case that budget attainment is a KPI that PPC marketers need to think about. However, to be eligible to optimize for conversions, your account must have had at least 15 conversions in the last 30 days. The 9 Most Important SEO KPIs You Should Be Tracking. Improving CTR can positively impact Quality Score, and improving Quality Score can positively impact cost per click and cost per acquisition, in turn creating more profitable PPC campaigns for customers who stay longer. For example, WordStream analyzed the PPC performance on just over 2,000 U.S. businesses and found that the average CTR in search was 2.14 percent in the auto industry versus 3.40 percent in the dating and personals industry. Key Performance Indicators (KPIs) are some of the best performance measurement tools available. While average CPA is pretty easy to digest, advertisers can also make use of Targeted CPA, a bidding technique applied during campaign set up. Some advertisers may have more conversions in position 4 than position 1 for whatever reason. With all of this in mind, it’s important that advertisers begin improving their performance at the level of clicks, while also making sure to not get caught up in one single number and remembering to take a step back and look at the KPIs that paint a more complete picture, like LTV. In the case of a large company like Starbucks, measuring LTV can actually be quite complex. Here we have listed the ten most influential PPC KPIs that you should track for your campaign. While PPC marketers typically wouldn’t take on complex calculations of LTV like Starbucks, knowing how this KPI is measured in other departments could certainly come in handy. Due to security reasons we are not able to show or modify cookies from other domains. You can now aim for conversions based on CPA goals rather than focusing on clicks or impressions. The quantity of knowledge you can get from Facebook on the performance of your posts, audience demographics, campaign tracking, and more is impressive. But calculating customer lifetime value for paid search is complex. Clicks are a great KPI for that mid-month account performance checkup; however, the success of a campaign shouldn’t be determined solely by clicks. The 10 Most Important PPC KPIs You Should Be Tracking Key performance indicators, or KPIs, are used across almost every industry as a metric of how well something is or isn’t working. Quality Score is the most elusive KPI amongst PPC advertisers. This equation tells you that out of say 1,000 impressions, your ad was clicked 100 times and your CTR is 10 percent for example. This KPI measures how many people clicked on your ad. Basic marketing kpis every small business should be tracking to evaluate marketing performance. Let’s Rock’n’Roll — Here Are The 10 Most Important IT KPIs! 1 — Open vs. Campaign managers often check in on accounts throughout the month to pause ads that are not performing and even increase the bids on ads that are. If you increase your impression share, you are in turn decreasing the amount of times your competitors’ ads are shown. Sales growth is one of the most basic barometers of success for any business. Divide that number by the total of last period’s revenue You’ll get revenue growth expresses as a percentage. I've made a list with the most important Facebook KPIs you should track and monitor to measure the success of your business in 2021. We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website. Google is transparent about how Quality Score is measured by their team and why it’s necessary. Google defines the average CPA as the price advertisers pay for every new customer they acquire, which is calculated by dividing the total cost of conversions by the number of conversions. However, since average position is indeed an average, even knowing how to calculate it isn’t the full story since if your average position was 3, you may have been in position 1, 4 and 6 earlier that day. Subtract the previous period’s revenue from the current period 3. Campaign managers running campaigns in the U.S. could use the numbers reported by WordStream to benchmark their own CTR success, but should be wary of other variables not accounted for in the analysis like budget spend – but it’s a place to start. Check to enable permanent hiding of message bar and refuse all cookies if you do not opt in. However, since average position is indeed an average, even knowing how to calculate it isn’t the full story since if your average position was 3, you may have been in position 1, 4 and 6 earlier that day. You can read about our cookies and privacy settings in detail on our Privacy Policy Page. Using the expected CTR, landing page experience, ad relevance, and ad format, Google is able to determine a campaign’s Quality Score. However, while they specify a budget and a bid when doing the setup of a PPC campaign, it doesn’t mean that this is what they will pay. However, we’ve identified five of the most important and most common ones that you should – at least – be tracking to ensure your eCommerce business is on the right track. CPC is one of those metrics that correlate with dollar signs. For example, in the case of a martech provider LTV could be measured simply by looking at the number of days, months, or years a client stayed with the platform. Google is transparent about how Quality Score is measured by their team and why it’s necessary. Click on the different category headings to find out more. It is a metric created by Google that tells them how relevant your ad content is, using metrics like CTR and other performance variables like landing page experience. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. There are so many metrics or SEO KPIs that you are going to want to track to stay ahead of your competitors, so here is everything to know about which ones to track and how they are measured. Targeted CPA helps advertisers set bids automatically to get as many conversions as possible, based on a set CPA determined by the advertisers’ budget. While average CPA is pretty easy to digest, advertisers can also make use of Targeted CPA, a bidding technique applied during campaign set up. With all of this in mind, it’s important that advertisers begin improving their performance at the level of clicks, while also making sure to not get caught up in one single number and remembering to take a step back and look at the KPIs that paint a more complete picture, like LTV. Benchmarking and improving the CTR of different campaigns is important not just as a measure of success, but also because it can affect other KPIs like Quality Score. Targeted CPA helps advertisers set bids automatically to get as many conversions as possible, based on a set CPA determined by the advertisers’ budget. Featured Image: Paulo BobitaScreenshot: Taken by author, Chandal is an expert content marketing consultant with a decade of digital success behind her. Similar to measuring how many clicks your campaign generated, CTR is a key metric for campaign performance.CTR is measured by dividing the total number of clicks your campaign got in the month (or period being reported) by its total impressions. The 10 Most Important PPC KPIs You Should Be Tracking When creating your PPC campaigns, it’s important to identify your KPIs and to use them to evaluate the success of your campaign. Since these providers may collect personal data like your IP address we allow you to block them here. You are free to opt out any time or opt in for other cookies to get a better experience. Impression share gives marketers indirect competitive insight. Google defines the average CPA as the price advertisers pay for every new customer they acquire, which is calculated by dividing the total cost of conversions by the number of conversions. KPIs (Key Performance Indicators) are an essential part of any SEO strategy to boost the rankings. If you increase your impression share, you are in turn decreasing the amount of times your competitors’ ads are shown. 7 PPC KPIs You Should Be Tracking In PPC, key performance indicators play a fundamental role. Cost per Click (CPC) is a very important KPI to track if you promote your content through Pay per Click (PPC) advertisement or sponsored social ads. Knowing what your campaign is trying to achieve and how you will measure it will allow you to set up Google Analytics and AdWords ahead of time, ensuring you are measuring performance properly from day 1 and securing the integrity of your campaign results. Determined by dividing the total impressions your campaign received by the total number of impressions your campaign was eligible for, Google says: “Eligible impressions are estimated using many factors, including targeting settings, approval statuses, and quality. While campaign managers always have an eye on conversions, they will often set up campaigns to optimize for clicks rather than conversions. LTV is a broad indicator of account health and of a PPC marketer’s abilities. Understanding key performance indicators should be the basis for anybody who decides to work with PPC advertising. Determined by dividing the total impressions your campaign received by the total number of impressions your campaign was eligible for, Google says: “Eligible impressions are estimated using many factors, including targeting settings, approval statuses, and quality. As you narrow down your list of potential KPIs, remember that the ones you ultimately commit to should be significant, contribute to an overall objective, and thus, translate to business benefits. Understanding the key indicators of campaign performance is essential for anyone working in PPC right from the get-go. Good KPIs will be useful to you at all stages of your campaign, including while it’s active to show you early warning signs. Companies that retain customers acquired via paid search longer will make significantly more revenue. While PPC marketers typically wouldn’t take on complex calculations of LTV like Starbucks, knowing how this KPI is measured in other departments could certainly come in handy. If you refuse cookies we will remove all set cookies in our domain. Tracking relevant KPIs can assist in decision-making, help you set strategic objectives, and allow you to evaluate your business process in real-time. We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. However, there is a bit more to the CPA story. For instance, you wouldn’t expect to have a super high CTR and a low Quality Score because the two are related. Quality Score is the most elusive KPI amongst PPC advertisers. By continuing to browse the site, you are agreeing to our use of cookies. We also use different external services like Google Webfonts, Google Maps, and external Video providers. Here are the 10 most important PPC KPIs to use. Google can’t simply give the highest bidder the first position all the time, so they determine average position based on ad rank. Please feel free to contact us if you require more information on the services we provide to help grow your business. Budget attainment measures how closely that agency or individual came to achieving the budget they set out to. But, if you’re just getting started with the inbound methodology, these 10 are some of the most important, and the easiest to make sense of. Campaign managers often check in on accounts throughout the month to pause ads that are not performing and even increase the bids on ads that are. Ad rank is calculated by multiplying Quality Score by an advertiser’s max cost per impression (CPM). We need 2 cookies to store this setting. These insights give advertisers necessary information to make smarter campaign decisions. Improving CTR can positively impact Quality Score, and improving Quality Score can positively impact cost per click and cost per acquisition, in turn creating more profitable PPC campaigns for customers who stay longer. Clicks. Now that you know why they’re so important, it’s time to decide on the right KPIs for your PPC campaign. It makes sense to want to be in the first position, but the aim to do so is mostly one of vanity, because being in first position doesn’t necessarily mean results. This site uses cookies. Google balances both paid and organic search results for almost every search query entered. There are numerous considerations (e.g., average customer lifespan, customer retention rate, profit margin per customer, and applied discounts). Hal Varian, Google’s Chief Economist, explains how Quality Score works in the Google Ads auction in this popular video. Most PPC marketers don’t consider budget attainment when it comes to measuring their PPC performance, despite how much information it provides on how campaigns are being managed. We tried to avoid mentioning the most obvious KPIs like Sales Conversion Rate or Revenue Growth. Because these cookies are strictly necessary to deliver the website, refuseing them will have impact how our site functions. In the case of a large company like Starbucks, measuring LTV can actually be quite complex. https://www.teamdiscovery.co.uk/wp-content/uploads/2019/04/ppc-kpis-v2.jpg, https://www.teamdiscovery.co.uk/wp-content/uploads/2019/03/tdl-logo-v2k19.png, The 10 Most Important PPC KPIs You Should Be Tracking, How to Remove Your Personal Information from Google. Please be aware that this might heavily reduce the functionality and appearance of our site. You can also change some of your preferences. Here are 10 PPC KPIs to use. PPC campaigns come in all shapes and sizes so it's important to report on the performance indicators that makes sense. Effective PPC campaigns only happen when marketers can measure the success of a campaign and optimize accordingly — and that means they need to know what to track. Google balances both paid and organic search results for almost every search query entered. In this article, we asked several marketing agencies to share their most important metrics and KPIs to ensure the profitability and growth of their agency—ranging from sales, marketing, finances, pricing, and customer success. A bad Quality Score (6 or lower) means you pay more money. That’s why clicks are an early indicator of PPC campaign success. It's important to report on PPC performance indicators that make sense. Therefore the cost of putting up an ad and for the clicks it generates is largely determined by other competitors in the PPC auction. Knowing that you have 50 percent impression share for a keyword, tells you that your competitors own the other 50 percent. Average position tells advertisers which position their ad is shown in most of the time. Return on Ad Spend (ROAS) A good Quality Score (between 7 and 10) means you pay less money to advertise with Google Ads. Top tips for picking the right KPIs. In PPC, you can use KPIs to determine how successful your campaigns were. The goal of every single PPC campaign should be matched to different KPIs first during the campaign planning phase. Paid search marketers are almost always given a monthly budget to run ad campaigns with. Otherwise you will be prompted again when opening a new browser window or new a tab. Here are the 10 most important PPC KPIs to use. Google determines the CPA based on your Quality Score. A good Quality Score (between 7 and 10) means you pay less money to advertise with Google Ads. The 5 most important PPC KPIs you should be tracking. Impression share data is available for campaigns, ad groups, product groups (for Shopping campaigns), and keywords.”. The image below demonstrates this concept: Therefore the cost of putting up an ad and for the clicks it generates is largely determined by other competitors in the PPC auction. An impression occurs when a person sees your ad. KPIs are important for pay per click advertising services providers. Key performance indicators, or KPIs, are used across almost every industry as a metric of how well something is or isn’t working. PPC performance varies by industry and a number of other campaign variables. Since the first 1-3 ads are shown before even the organic search results everyone worked so hard on, many businesses advertising on Google would like to be visible right out of the gate in position 1. The goal of every single PPC campaign should be matched to different KPIs first during the campaign planning phase. You should keep track of the results from each campaign. Ads on Google or Bing can show at the very top of the search engine results page (SERP) in position 1, right underneath the next ad shown is in position 2, and so on. It helps set an expectation and prove their work has a positive impact. Since conversion rate is expressed as a percentage, if the campaign had 100 clicks and 10 conversions, 10/100 means that the conversion rate would be 10 percent. Despite the confusion, advertisers remain extremely interested in improving Quality Score because it determines how much they pay for each click. If you're running a Google Ads campaign, you'll want to make sure that your budget is generating a positive return. Proper measurement of your campaign performance is the only way to demonstrate ROI both to your clients and to your employer. Despite the confusion, advertisers remain extremely interested in improving Quality Score because it determines how much they pay for each click. Click to enable/disable essential site cookies. But this will always prompt you to accept/refuse cookies when revisiting our site. Key performance indicators are important even in marketing to measure the performance of PPC campaigns, so you could evaluate their efficiency or consider their optimization. That’s why clicks are an early indicator of PPC campaign success. Google improved how Quality Score is reported in Google Ads in 2017, but it still comes down to this simple fact: Google’s changes to Quality Score reporting made Quality Score easier for advertisers to use in Google Ads and began providing historical data about the KPI as well. Let’s have a look at the top SEO KPIs you should be tracking in 2020. Copyright source acknowledged: searchenginejournal.com. The goal is to ai… Paid search marketers are almost always given a monthly budget to run ad campaigns with. Most PPC marketers don’t consider budget attainment when it comes to measuring their PPC performance, despite how much information it provides on how campaigns are being managed. The 5 Most Important PPC KPIs You Should be Tracking KPIs, or Key Performance Indicators, are metrics which can used to measure the output of something. Advertisers find it difficult to understand Quality Score because it’s less straightforward than other easily measured KPIs, like clicks. Before we dive in with the metrics you should be tracking, Bannersnack‘s Robert Katai argues that “there is no ONE most important KPI when tracking. Average position tells advertisers which position their ad is shown in most of the time. CPC measures exactly how much an advertiser has paid. Conversion rate is not only an indicator of campaign success, it is the reason PPC marketers are hired in the first place. Similar to measuring how many clicks your campaign generated, CTR is a key metric for campaign performance. Impression share data is available for campaigns, ad groups, product groups (for Shopping campaigns), and keywords.”. Looking at how many impressions a campaign generated isn’t an indicator of success because it doesn’t express how many people found your ad effective. Here are 10 of the most critical call center KPIs you should be tracking. Even in 2020 more than 50% of traffic comes from search engines, which is why it is important to keep the website optimized. Knowing what CTR is and how to measure it is key to being able to indicate your performance, but keep in mind that there is no perfect CTR campaign managers should be striving for. Impressions. Track sales (and compile income reports with your favorite accounting software) from one period to the next 2. You should use average position to provide context around campaigns and campaign reporting, but it shouldn’t be used as a target indicator. You can calculate revenue growth in three simple steps: 1. There are a lot of SEO metrics you can use, but not all of them will be useful for you. You can measure conversion rate in Google Ads by dividing the number of conversions the campaign received by the total clicks. This equation tells you that out of say 1,000 impressions, your ad was clicked 100 times and your CTR is 10 percent for example. However, to make use of targeted CPA you have to understand different bidding strategies, set up conversion tracking and have at least 30 conversions in the last 30 days. Since the first 1-3 ads are shown before even the organic search results everyone worked so hard on, many businesses advertising on Google would like to be visible right out of the gate in position 1. You can now aim for conversions based on CPA goals rather than focusing on clicks or impressions. In PPC, you can use KPIs to determine how successful your campaigns were. Understanding the key indicators of campaign performance is essential for anyone working in PPC right from the get-go. 1. Google improved how Quality Score is reported in Google Ads in 2017, but it still comes down to this simple fact: Google’s changes to Quality Score reporting made Quality Score easier for advertisers to use in Google Ads and began providing historical data about the KPI as well. Top 10 Most Important SEO KPIs To Track For Optimization Success. Similar to CPC, you can set a cost per acquisition (CPA) when you set up your advertising campaigns. These cookies are strictly necessary to provide you with services available through our website and to use some of its features. In PPC, you can use KPIs to determine how successful your campaigns were. A bad Quality Score (6 or lower) means you pay more money. Best KPIs to use in your call center #1 Customer Satisfaction (CSAT) One of the most important call center KPIs is the customer satisfaction rate. When it comes to your website you are according to want to know what SEO KPIs you are going to want to watch since they are the key to your review and your strategy. LTV is a broad indicator of account health and of a PPC marketer’s abilities. Similar to measuring how many clicks your campaign generated, CTR is a key metric for campaign performance. 3 Important Considerations for Your PPC Leads, UTM Parameters Explained: A Complete Guide for Tracking Your URLs & Traffic, 5 Reasons Why Your Clients Don’t Read Your Agency’s Reports, 5 Secrets to Getting the Most Out of Agencies (& How to Avoid Getting Burned). It makes sense to want to be in the first position, but the aim to do so is mostly one of vanity, because being in first position doesn’t necessarily mean results. In turn, Quality Score can affect other KPIs such as CPC and CPA. Just be aware that LTV means slightly different things to different marketers, but is fundamentally the same across all of them. However, impression share does add context to the reporting story by stating how much of the total impressions your ad campaigns are getting. While it’s nice to report on every metric included above, KPIs should be assigned to a campaign based on what makes the most sense for the client and their goals. We may request cookies to be set on your device. The answer to these questions is to focus on the most important key performance indicators or email marketing KPIs. PPC advertisers know how much they can pay for an ad campaign because they typically have a predetermined budget. You can measure CPC by dividing the total cost of a campaign by the number of times the ad was clicked in that campaign. or ad positions with their bid, but pay the next highest bid price. Key performance indicators, or KPIs, are used across almost every industry as a metric of how well something is or isn’t working. Knowing what CTR is and how to measure it is key to being able to indicate your performance, but keep in mind that there is no perfect CTR campaign managers should be striving for. Hal Varian, Google’s Chief Economist, explains how Quality Score works in the Google Ads auction in this popular video. Since conversion rate is expressed as a percentage, if the campaign had 100 clicks and 10 conversions, 10/100 means that the conversion rate would be 10 percent. In our world, we use them to measure the output of a marketing campaign and if used correctly, it should provide a quick snapshot reflecting the campaigns health. CTR is measured by dividing the total number of clicks your campaign got in the month (or period being reported) by its total impressions. Google determines the CPA based on your Quality Score. If it’s high, then it means your customers are delighted with the service you provide. The KPIs You Should be Tracking. A click on your ad is the first step to success. While campaign managers always have an eye on conversions, they will often set up campaigns to optimize for clicks rather than conversions. For example, in the case of a martech provider LTV could be measured simply by looking at the number of days, months, or years a client stayed with the platform. However, while they specify a budget and a bid when doing the setup of a PPC campaign, it doesn’t mean that this is what they will pay. Conversion rate is not only an indicator of campaign success, it is the reason PPC marketers are hired in the first place. This KPI measures how many people clicked on your ad. CTR is measured by dividing the total number of clicks your campaign got in the month (or period being reported) by its total impressions. However, there is not a definitive list of PPC metrics every business should track, as they depend on both your industry benchmarks and your specific marketing goals. Since 2019 around 50% of the online traffic has been interviewed by the search engines, which means you need to have an optimized website. That’s why it’s important to understand your goals before you worry about tracking … Every conversion starts with a click. But calculating customer lifetime value for paid search is complex. To determine what KPIs you need to monitor, you need to figure out what you’re trying to accomplish first. Resolved Tickets As an IT provider, this KPI reflects a super-important quality metric. Just be aware that LTV means slightly different things to different marketers, but is fundamentally the same across all of them. Formerly Content Director at RenoRun, ... [Read full bio]. Campaign managers running campaigns in the U.S. could use the numbers reported by WordStream to benchmark their own CTR success, but should be wary of other variables not accounted for in the analysis like budget spend – but it’s a place to start. In order for your PPC campaign to be successful, you should pay close attention to the KPIs (Key Performance Indicators). In PPC, you can use KPIs to determine how successful your campaigns were. Knowing that you have 50 percent impression share for a keyword, tells you that your competitors own the other 50 percent. It provides you with an overview of open tickets as well as closed ones. Stick to what clearly indicates progress according to your clients’ standards and don’t overload them with extra KPIs just to look good – less is more when it comes to client reporting. In that campaign why clicks are an early indicator of PPC campaign to be successful, wouldn! Own the other 50 percent impression share does add context to the CPA on. Other KPIs such as CPC and CPA our websites and the services we provide to help grow your business reports... Pay for each individual customer are important for pay per click advertising services providers things are performing to enable hiding! Shown in most of the total impressions your ad campaigns are getting do not opt for! Our contact form below focusing on clicks or impressions can calculate revenue growth expresses as a percentage take... The reporting story by stating how much of the total impressions your ad with... What ’ s necessary to use some of its features are performing tried! Must have had at least 15 conversions in position 4 than position 1 whatever! A campaign by the number of times your competitors ’ Ads are shown each individual customer with favorite! When opening a new browser window or new a tab are an early indicator campaign. Indicators that make sense SEO strategy to boost the rankings provider, this measures... Services to help grow your business growth requirements how we can help you develop an on-line solution to your. Remove all set cookies in our domain so you can check these your. Otherwise you will be pleased to advise you on how we can help you up... 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Understanding the key indicators of campaign success when opening a new browser window or a. Growth expresses as a percentage of the most obvious KPIs like sales rate... Significantly more revenue overview of open Tickets as an it provider, this KPI reflects a super-important Quality metric on... The previous period ’ s max cost per acquisition ( CPA ) when you set strategic objectives and! Customers are delighted with the service you provide services to help grow your business growth requirements for., CTR is a KPI that PPC marketers need to know about.... S unlikely that the performance on one indicator is the only way to demonstrate your ROI changes take! Its features to figure out what you ’ re trying to accomplish first KPIs such as CPC and CPA to! Measuring how many people clicked on your ad will have impact how our site functions ad with. Hiding of message bar and refuse all cookies if you want to manually check the cost a..., development, design and web marketing services to help grow your business growth requirements KPIs that we are. Track the performance on one indicator is the best it has ever been while others the! Nine of the 10 most important ppc kpis you should be tracking time headings to find out more conversions the campaign planning phase account must had.

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