Cumulus Looking To Cut AP and Traffic Costs

Lew Dickey now wants to be cheaper than his archrival Saga’s Ed Christian.

He’s targeting the large lucrative contracts AP has with Cumulus and is ready to dump his traffic services to go with a cheaper vendor.

The other shoe is about ready to drop.

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1.  Who the new Cumulus traffic provider will be and approximately when that bombshell will hit.

2.  Next target:  Associated Press.  How Cumulus expects to save and the two leading candidates to replace AP.

3.  The former Clear Channel employee that was recruited at the time of the Citadel takeover under the radar by the Dickeys to cut news expenses across the group.

4.  Once a deal is in place, the strategy Cumulus will implement to guarantee that the costs continue to go down. 

5.  And, ironically, how former Citadel CEO Farid Suleman actually made it possible for Lew Dickey to completely gut his news agreements and start over at a lower rate.

The answers begin here.

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How Cumulus May Buy Dial Global & Westwood One

I’m hearing a scenario where Lew Dickey winds up with all the radio networks he needs to compete against Clear Channel’s Premiere.

It’s a fascinating play.

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1.  How Dickey lost out on buying Westwood One that he could have merged with Citadel Media.

2.  Which venture capital group actually screwed him out of buying Westwood One.

3.  Which investment group is willing to put Westwood One and Dial Global in Dickey’s hands.

4.  Cumulus is the hottest radio stock in the industry – at a mere $3.57!  What insiders know that outsiders don’t know.

5.  The new double standard on Wall Street for media deals that allows bankers to compete with investors and then sell them assets in return for a bigger share of the company.

The answers begin here.

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Clear Channel’s Buyer

I’ve got a big one for you today.

I am going to identify the company I think is on track to buy Clear Channel.

It’s not a radio company.

They don’t even own a single radio station, yet you will soon see how this helps explain the erratic behavior lately of CEO Bob Pittman.

Print and save it but don’t bet against it.

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1.  I’ll name the company you probably would never name that I’m betting Bob Pittman is wooing right now to acquire Clear Channel. 

2.  The time frame – not this year but not that far off, either.  There are certain things Pittman must do that will prepare Clear Channel to be acquired.  If radio must suffer, so be it. Here’s how.

3.  Why everyone is misreading Pittman’s appointment of John Hogan to a promotion! Pittman is grooming Clear Channel to be purchased by this company and is changing it right before our very eyes to fit their needs not Clear Channel’s. 

4.  Evidence that Hogan will not be running Clear Channel radio soon – maybe within six months although no announcements will ever be made.  And you’ll see who Hogan’s replacement will be because sources close to Clear Channel say he is already “in the house” and going on station sales calls.  Now.

5.  Hint:  Mel Karmazin tried to buy CBS Radio from Viacom’s Sumner Redstone and Redstone bought Infinity and then hired Mel to run it all.  I’ll tell you what Bob Pittman likes about Mel’s strategy and why he may borrow it.

The answers begin here.

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Trouble at Cox Radio

Big trouble is brewing within Cox Radio.

Cumulus and Clear Channel open their big mouths and even brag about firing people, but Cox has kept it all on the down low.

Until now.

Through my confidential newstip network I’ve got 12 credible examples of why things are beginning to trend the wrong way at a formerly excellent radio group.

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1. All the details on the latest cost cutting right down to which market and what the estimated savings were.

2.  Examples of Cumulus-type cutbacks.  That’s right, at Cox!

3.  The almost unthinkable post-Bob Neil serial cutback of program directors and where it is likely to lead next.  Market manager/station manager cutbacks, too.

4.  How Cox is pissing all over Bob Neil’s 8 units per hour commercial dictum.

5.  The vanishing research and consultation arm of Cox Radio.

6.  The answer to whose watching the store.  Neil had been the “ground stop”, but this story will show how decisions are being made fast and furious no matter what the implications.

7.  The next Cox cluster likely to get a “haircut”.

8.  And heartbreaking stories from within the company to show alleged shoddy treatment of loyal employees that will make you wonder whether we’re talking about Cox or Cumulus. 

The answers begin here.

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Next Media Solutions Lab is January 30-31, 2013 at The Phoenician in Scottsdale, AZ.

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Clear Channel’s Madonna Flop

Even hourly airplay on Clear Channel hit stations couldn’t prevent Madonna’s “Give Me All Your Luvin’” from being a flop.  Forget the Super Bowl.

This new corporate payola – “you give us a partnership and we give you the world” should be prosecuted in court.  It’s worse than djs or PDs taking payola.

But, there is more to the Madonna-Clear Channel flop than meets the ears.

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1.  What they are saying in the UK about Madonna’s first studio album in years even before she launces a worldwide tour.  Ouch!

2.  Why Bob Pittman who could never beat the giant WABC in New York when he was at rival WNBC is making the same mistake as Programmer in Chief of Clear Channel.

3.  So Madonna has a stiff – does that mean that from now on radio stations have to play it in return for favors?

4.  Why playing Madonna every hour on the hour is about as cool as Mitt Romney saying he is against ObamaCare every time he opens his mouth.

5.  And speaking of uncool – how Bob Pittman is killing program directors at Clear Channel who know how to program.

The answers begin here.

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The Pittman-Hogan Team

Everything CEO Bob Pittman has been doing lately is painting a picture of where Clear Channel is headed and it may not be where you think.

Why would Clear Channel extend once again the contract of the inept John Hogan to run its radio stations if they were serious about being in the radio business?

Hell, they’d hire a Dan Mason type.

The end is in sight for Clear Channel as you know it and hate it.

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1.  How long before Bob Pittman exits?  I’ll tell you the number of years he and his minions have.

2.  What is now the end game for Lee and Bain, the investment bank owners of Clear Channel.  You’ll see it more clearly after this.

3.  Is all this iHeartRadio stuff really serious or just a distraction?  And what’s up with that ad they bought for iHeartRadio on the CBS Evening News the other night?  Is that where their concert going audience now spends their time?

4.  Madonna’s flop that Clear Channel played at the top of each hour – and why Pittman’s partnership act has a limited life – very limited.

5.  Debt and Acquisitions.  Can Pittman refi $18 billion in debt?  Will they buy something?  What will it be?  Or sell the entire company.  Hint: I’m now convinced they are looking to sell the entire company and I’ll tell you when.

6.  Losing key people.  Clear Channel is keeping it quiet but I’ve got news for you about major personnel defections in a little market named New York and you’ll split your sides laughing when you hear who they went to work for.  Don’t even try – you’ll never guess.

The answers begin here.

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MUSIC: The Beatles Get Into Ringtones Too Late

What’s up with Adele and McCartney getting out of Spotify when Spotify is supposed to be the record labels great hope against piracy?

And then The Beatles get into ringtones just as the ringtone market peaks.

Here’s what’s up.

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1.  The projected ringtone, ringbacks and wallpaper market in just 3 years from now.  How it compares with the latest sales figures.

2.  What’s up with Adele – as smart and young as she is – dumping Spotify?

3.  What’s up with Macca – as smart and old as he is – dumping Spotify?

4.  Why the wheels are coming off of the record industry even as record execs are loosening the lug nuts.

5.  The one sure way – that none of these artists are paying attention to right now – to avoid big mistakes like these.

The answers start here.

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Secret Plans of Radio Consolidators

Notice how quiet it is out there in radioland?

Not for long.

Clear Channel, Cumulus and one other radio group is hell bent to thin out their workforce even more and put more programming on autopilot.

Here’s what people on the ground are telling me about reductions in workforce at two serial offenders and one new perpetrator.

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1.  If you’re in this size Clear Channel market, look out!

2.  My sources close to the action tell me there are big changes ahead for Cumulus clusters and I’ve got them for you right here.  And, by the way, is something up with Jan Jeffries?

3.  Believe it or not – one radio group is starting to head in the wrong direction.  I’ll tell you how and who it is so you can be warned in advance.

4.  The two big radio groups that are – so far, anyway – refusing to do any more major downsizing.  If you work for them, you can feel safe.  And believe me, I don’t use those words very much.

5.  The radio group once on the radar screen but lost in space that actually has a chance at a comeback.  No promises, but this would be major.

The answers begin here.

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Digital Radio Is a Fraud

The radio industry says that digital is up 15% while radio revenues are up 1%.

Huh!

And what is their definition of digital?

Radio, the industry that sat out the Internet revolution and lost an entire generation of future listeners to file sharing and mobile devices is flirting with danger again.

This article tells you why and names four things you can do right now to get real about digital content developed by radio and/or radio people.

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1.  The four big digital hot buttons – Siri, content dumping, you as the new social network not Twitter or Facebook and setting up shop with listener’s credit cards. No one in radio is focusing on this – here’s how you can.

2.  The medium ad agency buyers prefer after they buy spot TV.  You won’t believe it but a new study that I will quote says it is so.

3.  The real digital strategies of radio groups – even good ones – and why they aren’t ready for prime time.

4.  The big radio group that is known to require sellers to make their digital numbers even if they take drain money from radio buys.

5.  Four radio groups that have a reputation for not giving away streaming as value added to a radio buy.  You’re going to want to sit down for this intelligence.

6.  Why individuals or startups can jump on the four digital hot buttons today and get way out ahead of radio if they want to pursue a real hot growth business.

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KFI, Los Angeles – Idiots Playing With Whitney Houston’s Fans

Can radio find another way to screw up Whitney Houston’s death?

Now there is news of two more horrific examples of consolidated radio blowing it.

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1.  What at least one Cumulus classic hits station was ordered to do last Monday morning?  

2.  John & Ken weren’t the only idiots at KFI, Los Angeles when they called Whitney Houston a “crack ho” on-air yesterday.  There’s a bigger one than that.

3.  Why radio has all of a sudden started acting uncool and 7 surefire ways to please your audience instead of piss them off. 

4.  New social networking concepts that radio would be smart to employ a.s.a.p. because listeners would perceive them as positive.

These daily teasers will soon come to an end.  Hope you will continue on and join our group.

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Sony Music Dances on Whitney Houston’s Grave

How stupid is a record label that tries to gouge consumers by exploiting the death of a music superstar?

Not as stupid as we might be if we fail on these 5 New Rules of Social Media.

How do you stack up?

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1.  Sony did the opposite of what they should have done.  Learn from their mistake and do this instead when faced with a social media crisis.

2.  Apple stores have the answer for Sony.

3.  How a company that owns the beached Italian cruise ship and Sony Music did the same thing to piss off customers.  Don’t do this.

4.  How social media – Twitter, Facebook, and networking – has changed in the past year.  Keep up.

5.  Do you know the new goal of social media?  Sony didn’t, but you will.

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Radio’s Broken Word Format

Spoken word is not the salvation of FM.

Even Randy Michaels can’t make it work.

Only the radio brands that have paid attention and protected their flanks will survive the future.

But here are 5 formats that I’m saying will work on radio.

First one in – wins.

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1.  No format radio.  I’ve got the blueprint for how to do it and where the cash streams come flowing in.

2.  Music discovery.  You won’t do regular hit radio even if PPM blesses it once you hear this version of the hit music station listeners will crave.

3.  Daypart radio.  How to build one 4-6 hour station with great local content and then what to do with it that keeps costs so low even Lew Dickey would love it.  Okay, I’m lying about the Lew Dickey part.  The rest – all true.

4.  Radio as a mobile online sampler.  You’ve never heard this idea.  If you’ve got an open mind you can beat your competition to it.  Radio’s future right here.

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How Radio Should Have Handled Whitney

When Whitney Houston died the other day, I told you in graphic terms what didn’t work about radio’s lack of response.

Now, I’m going to offer what works.

On-air.  Digital.  And social networking.

It’s not too late.  She’s being buried Saturday and there will be a next time so be ready.  Steal these 10 strategies now.

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1.  Rule #1 – get this right and you’re off and running.  Blow it and everything else you do doesn’t really matter.  Did you do this right last Saturday?

2.  The single, coolest and impressive thing a radio station can do when their audience loses a huge artist.  And virtually no station does it – until you do.  A complete playbook.

3.  What to do on-air – day of a big event and in the days after.  Don’t think you know what today’s listeners really want.  Look here first.

4.  Best new ways to connect with the audience.

5.  A new, better way to use Facebook and Twitter.

6.  A new social networking service I highly recommend you embrace – you’ll thank me.

7.  Some very cool things your station can do to win the hearts of fans and future fans but even read this if you don’t have the guts, because you’ll need them.

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Huckabee as the New Rush Limbaugh

Cumulus is spitting in the face of Clear Channel now.

Lew Dickey is pulling Rush Limbaugh off his air no matter how good the ratings and revenue to save more money.

And now Bob Pittman is stuck with a talker who is used to getting paid licensing fees just to be on the air.

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1.  The real strategy behind Cumulus replacing the highly rated Limbaugh with the lower rated Huckabee.

2.  What happens if the ratings decline once Limbaugh is off.

3.  The new model we’re now seeing at Cumulus inspired by the people who will help them buy one or more of these three radio groups I am about to name.

4.  Clear Channel’s dilemma.  Cumulus pulling Limbaugh isn’t just a programming change, it upsets the kind of money Clear Channel can get for its expensive talk star.  Here are the gory details.

5.  Guess who may turn out to be the big winner.  Not Rush.  Not Huckabee.  You’ll never guess.

6.  What both Cumulus and Clear Channel can’t see coming directly at them from left field.  But you will and you may want to use it to your advantage.

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January 30-31, 2013 at The Phoenician in Scottsdale.  It’s time that you save the dates and make plans to attend what those who do say is the best media conference of all.

Customer Reviews of my new book …

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Whitney Houston

One of radio’s brightest musical stars died Saturday and another part of radio died, too – but not the part you think.

Since Michael Jackson’s death, radio has become frightening and disturbing in ways you don’t want to be.

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1.  How radio consolidated the death of one of its greatest musical divas.

2.  How Michael Jackson’s death and Whitney Houston’s death compared in today’s radio.  

3.  Who and what cleaned radio’s clock on reporting and remembering the loss of their latest musical icon.

4.  Adele vs. Whitney as far as radio is concerned.  This says everything you need to know about the future of music on radio.

5.  If radio is dying and the Internet is no viable alternative, this one thing is and you need to become the master of it.

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Thank you to everyone who attended my annual media seminar Thursday and Big Ideas Breakfast Friday and for telling me it was the best ever.  Plan ahead and block out the date for next year’s Media Solutions Lab January 30-31 at The Phoenician in Scottsdale.  No more staying at home and missing out.  Ask anyone who attended how so worth it it was. 

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Merlin Reloading For Its Next Attack On CBS

There is growing evidence that Merlin Media head Randy Michaels is plotting the second launch of his failed Merlin Media news stations.

Key people are following former COO Walter Sabo out the door and Michaels is surrounding himself with familiar faces who understand what he does.

The second foray against CBS is about to begin.

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1.  The new go-to person for Randy Michaels now that he has forced Walter Sabo out.  And it’s not John Gehron.

2.  How Merlin hopes to develop a flagship station and replicate it in other markets.  And no, that flagship station will not be in New York.

3.  Don’t bet that Merlin sticks with its all-news imitation of 1010 WINS.  Here’s a better bet.

4.  The gaping hole in Merlin’s model that won’t get fixed even if the ratings go up.

5. Randy isn’t going to buy another big market station next, right?

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Radio’s Bold Predictions From My Conference Today

I am conducting my Third Annual briefing to the media industry on the emerging trends for the year ahead.

There are two big major things I see happening that I want to share with those of you who couldn’t make this year’s event because you are a valued member of our group.

The two big things involve new delivery systems and the new forms of content you will likely have to create.

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1.  How a radio station or even an ex-radio personality can use Siri, Apple’s talking mobile phone, to connect their content to fans in seconds without having to type anything.  No towers or transmitters are needed.

2.  What is “content dumping” – this is a term I have coined for what you will be doing in the future if you plan to be around for it.  You can bet on it.  Why not get out ahead?

3.  How to make the listener talk to the “radio” and access content instead of having radio play content for them. 

4.  An example of how personalities, news stations, even djs will be connected with fans by Siri in the car.  This is bigger than a remote control – and as you’ll see, better.

5.  How you will have to create content dumps instead of 4-hour long shows.  I’ll describe it.

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CBS Rethinking FM

Changes are anticipated at CBS Radio.

They have big decisions to make not only about protecting a few more revenue producing AM brands but what to do with FM music in the era of Pandora.

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1.  The next sports and/or news AM stations that CBS needs to protect by sacrificing an existing FM outlet.

2.  The changing view of music FM stations at CBS.

3.  Why is CBS waiting so long in New York to protect 1010 WINS?

4.  A surprising, highly-rated and profitable FM station that someday may have to become a simulcast to protect a profitable AM brand.  The toughest call of all.

5.  The safest CBS FM music station.

6.  What happened to CBS President Les Moonves’ assertion that he’s open to selling some smaller markets.  An update.

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The next Media Solutions Lab is January 30-31, 2013 at The Phoenician in Scottsdale.  Save the date right now.  Make plans to attend.  Get the lowest rates.

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Susan G. Komen & Social Media

What if Merlin Media’s Randy Michaels actually used social media the way the protestors who stopped the Komen Foundation from pulling their Planned Parenthood grant.

He can and you can, too.

But it requires change – using Twitter and Facebook as strategic tools and you as the social network.

Here’s how.

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1.  The key strategic element – the one that is absolutely necessary for viral promotion – and how to unleash it.

2.  How you can organize anybody through social media – with an example of how Randy’s Merlin Media should be doing this to rally future listeners to his all-news stations.

3.  Once you attract a firestorm of support, do this to keep them engaged. 

4.  The biggest mistake most media companies make when using Twitter and Facebook.  Cure it right here.

5.  How Merlin Media should have attacked CBS using social media with all the details Randy missed.

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Just two days until my February 9th Media Solutions Lab – I’m getting excited.  A full day of strategic media information and a next day Big Ideas Breakfast with 99 Ideas to take home and implement.  Count them!

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Madonna & the Clear Channel Super Bowl

Bob Pittman pulled off another one of his corporate partnerships Sunday when Madonna and Clear Channel entertained during the Super Bowl that the Eagles did not play in.

You’ll see Pittman doing more of these partnerships so I got to thinking if I competed against Clear Channel, I’d wipe them all over the floor because of their failed strategy on music and radio.

Here are 5 specific things I’d do and I suggest you consider if you want to hang corporate radio on their own bad decisions.

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1.  A radically different approach to music playlists – force corporate radio to look and sound even worse than it sounds.  After all, the Madonna single that got all that publicity may not be a hit.

2.  The social media network I would start aimed at corporate radio, which would hamstring them on the air as well.

3.  How to answer the big corporation that can do two Las Vegas concerts every year with the biggest names.  Clear Channel would never think of this response.

4.  What you ought to do tonight at 12 midnight and every night from now on.  It will start buzz and give you music cred that corporate radio cannot earn.

5.  I would do this Bain Capital promotion on-air and show your listeners you not only have a sense of humor but you are as cool as Barack Obama singing Al Green.

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Cumulus Closing In On Next Acquisition

Cumulus is poised to strike again and I wanted to bring you up to date on the repercussions and give you a sense of time frame.

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1.  It appears a major broadcast group has just put itself into play and Cumulus wants it.  I’ll tell you who.

2.  Telltale signs that this group is getting itself ready for market.

3.  Nerves are getting frayed at this fairly well run radio group because the rumors are getting louder that Cumulus wants to buy them.  If you work in radio, you’ll want to know which group is being targeted by Lew Dickey.

4.  The one radio group that stands the most to lose if Cumulus adds another 200 stations this year, which is not only possible but also likely.

5.  Time frame.

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Join me at The Big Ideas Breakfast the morning after my February 9th Media Solutions Lab.  Tons of opportunities to pounce on plus 99 tools and strategies to give you the edge in the year ahead.

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The Next Facebook

Facebook will have 1 billion users by the end of this year and a new IPO to raise $5 billion.

But Facebook is over – peaked, grown out.

A better investment is to get in on the Next Facebook, which this article is all about.

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1.  First, is it worth buying in on the Facebook IPO.  Here’s what I plan to do.

2.  Undeniable evidence that Facebook has peaked.

3.  Would you like to know what the “Next Facebook” is?  I’ll tell you and explain how you’d be wiser to invest in this than the Facebook IPO announced yesterday.

4.  The mistake most content providers continue to make when integrating social networking into their businesses.

5.  What is Content Dumping?  It’s your future.

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