INTRODUCTION PROBLEMS. CPAnetwork. Partner (platform / web-master)

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1 Why? ads

2 1 TABLE OF CONTENTS Introduction..2 Problems.2 Market research.4 Global advertizing market..4 Main competitors.6 adswhy platform mechanism of work..8 Tokensale...9 Tokensale reasonability...9 Tokensale structure..10 Roadmap..11

3 2 INTRODUCTION Project adswhy is a new stage of development of partner programs in marketing business. On one hand, system adswhy will allow to reduce advertiser s expenses or increase conversion rate without increasing expenses. From another hand, the funds from advertising will be obtained not by Intermediaries but by End Users. adswhy project is the First Decentrilized Service realizing partner programs without web-masters participation. The idea of this project was born because of the low quality of web-masters work which were attracted by standard lead-generation services. The experience of using standard CPA-networks showed the low quality of work of Intermediaries and also low quality of the potential clients contact bases provided by them as quite often information collected by them is not relevant. As a rule, the conversion rate of conducting marketing campaign by using a standard partner network is very poor. The idea of decentralization project solves the above problems attracting regular users and changing their perception of advertisement. The System adswhy will become an effective lead-generation tool for advertisers. PROBLEMS One of the most interesting concepts in modern marketing is partner networks. As for increasing advertisor s profit, the use of CPA-network may not only increase shortterm profit but to collect the base of target consumers of a good/service on long term perspective. Schematicaly, the work principle of advertisor s offer looks as following: CPAnetwork Payment for payment actions Provides traffic Optimizes traffic and turns it to action Payment for leads Advertiser Partner (platform / web-master)

4 3 It may seem that such principle of work «I do something for you and you do something for me» should work without failures if certain terms are met. But in reality some flaws appear such as: Loss of both traffic and actions: One of the most common problems. It may depend on many factors for example, when a customer clicks through a direct link in search after viewing or changing the device (notebook to a phone or viceversa) and errors in cookie storaging. The losses of traffic may also happen due to incorrect CPA-network website, its freezings and failures. Non-acceptance of leads by an advertiser or low conversion rate of traffic leads. Due to advertiser s low quality level of work with traffic the conversion rate becomes too small and platfroms start refusing to work with that offer. Short lifetime of channel or its instability. Verbal agreements with advertisers lead to the situations when offers suddenly stop working having run out of budget or because of the advertisors decisions which lead to losses of Platforms. Dusputable situations upon traffic measurements. Because of clickthroughs on links from different platforms the question of the end profit maker from that lead is very disputable. In total, it can be not counted or accounted to a network. Long payments between network participators. In that scheme the calculations may be delayed for few months due to necessity to confirm traffic source, to confirm leads, actions and etc. Naturally such long delays do not improve work with traffic and increase advertisor s conversion rate. Thus, offers may stop working fastly having run out of budgets or having been dissapointed in conversion and platfroms stop working because of delays of traffic and losses of money and etc.

5 4 PROBLEM SOLVING The project we develop is designated to bring the work of advertisers with traffic to a brand new level. The main advantage is closer traffic interaction with advertisor. The use of our techologies allows: For advertisor: - to reduce fraud percentage to a minimum; - to reduce time in mutual payments chain due to platforms removing which will help to correct budget for such marketing type; - to increase conversion rate. For end consumers: - to obtain certain revenue from target actions at offers they are interested in; - to receive information on new offers from companies they are interested in. The project we develop significantly simplifies advertisor s work with such tool even in short-term period because regular users are not so sensitive to sudden offer s shutdowns as the platforms are, at this moment. Also closer interaction of user with advertisors with online-statistics will allow advertisors to work more flexible to increase conversion. MARKET RESEARCH Global market of advertizing The market of CPA networks services is at quite high level of development now, the acceptance of this scheme of interaction by advertisers with potential buyers/users is also quite developed. The peak of CPA systems spreading in was characterized by the fact that advertisers paid much, and advertizing at the same time cost little. Now the situation has absolutely changed: advertisers cut advertizing budgets, reduce payment for webmasters and the competition starts to grow as there are more and more webmasters and advertisersers entering this market. At the same time users who should face all ads are forced to look through often absolutely not necessary information. The traditional segments of different countries economy which can be considered the most profitable for CPA marketing include finance, ecommerce, online games, wowgoods.

6 5 According to experts forecasts the global expenses of advertisers in 2017 will reach $550 billion, at the same time the growth rate will be slowed down a little in comparison with previous years and will be about 3,5-4%. For comparison, in 2016, the growth of expenses of advertisers will be about 5,8%. Also experts assume that Internet advertizing in the next year will finally overtake TV-advertizing. It is expected that in the next years Internet advertizing will make more than 40% of the global advertizing market. Thus, growth of size of the market of advertizing is slowed down, at the same time significant increase in size of the market of Internet advertizing is observed that increases its appeal to investment, including development of CPA-systems. MAIN COMPETITORS Our main competitors in the market are the similar CPA-systems. Their main flaw is the existence of a large number of intermediaries known as webmasters. At the moment, there are about 200 CPA networks, most often they unite offers (advertisers) from various fields of activity, however there are also highly specialized networks. The closest competitors in the market: 1) Leads Large financial CPA network More than 10 million inquiries on wordstat Very high level of support sue to the fact that 90% of offers have good call-centers with the possibilty of instnt calls Stable offer accepting the large volume of applications for a long terms 2) IQ Option Affiliate Program countries, more than 23 million clients, more than 75 thousand partners 2 times per month payments The product is presented both in the web version, and in a mobile application Multi lingual product Adaptability of references An opportunity to analyze results online, convenient reports and various conclusions of data.

7 6 3) Admitad Possibility to withdraw money on demand There is no fee on funds withdrawal More than one hundred of exclusive offers The offered tools also contain a ReTag-container, commodity feeds, promo codes, etc. 4) TradeLeads More than 320 offers from games to online stores Individual terms and conditions depending on quality of traffic 24/7 support Advanced system of analytics Free training in arbitration secrets 5) ActionPay More than 173 thousand sources of traffic, more than 26 million goods, about 1700 offers Traffic control Flexible approach to integration of systems They have their own department for traffic attraction 6) AD1 ad1.ru the aggregator of partner programs which is successfully working at the market of Internet advertizing since 2011 more than 180 thousand partners, more than 2500 advertisers modern system of statistics 24/7 payments for the checked partners payments in rubles and US dollars 24/7 support service personal managers 7) LeadGid The financial partner network helping banks to effectively use the Internet opportunities 8) LeadTrade big set of various profitable partner programs convenient statistics fast support instant payments

8 7 9) CityAds Main directions: Games (100+ of offers) Mobile (25+ of offers) Finance (230+ of offers) Al. commerce (350+ of offers) Travelings (40+ of offers) Real time statistics The system of recommendations on the basis of Big Data Convenient subscriber accounts 10) Lead-R Personal managers Advanced analytics Discounts for traffic for partners 200 of offers Own call-center and logistics services Payments in day of inquiry 11) KissMyAds Personal manager 24/7 support Instant payments for inquiry Advanced analytics Flexible conditions of cooperation The project developed by us is not worse than closest competitors on main criterias, and on some criterias is better than them so that allows us to count on a certain share of the market, and considering growth rates of the internet advertizing market we can count on increase of this share in the future. That will provide both the growth of CPAnetwork, and its profitability.

9 8 MECHANISM OF adswhy PLATFORM OPERATION The software necessary for system operation is set on the user's computer after that it is possible to start working. The network transfers offers according to the conditions specified in the task, each node receives and displays content to a user according to a node profile and relays remaining messages further on a network. The project network is peer-to-peer so any node can act both as advertiser and content consumer, absolutely parallely. Restriction for relaying or offer message lifetime is 7 days. It means that sent message with content will be relayed on a network within seven days to support accessibility of the message among all nodes, and messages which are older that 7 days will not be relayed. Thus, for maintenance of a network it is enough to store the last 7 days of operation of all network that does not occupy a lot of hard drive space of the user. Each message contains the sign-code signature with the advertiser's key, confirming authenticity of the message with an offer. When viewing content the user s client signs an open message with the private key then saves data upon condition execution and sends together with the internal address (a public key of the user) of the client further within network. The advertiser s node client also receives all messages of a network, selecting responses of users nodes according to the signature, releases the specified quantity of tokens for each message signed by the user, sending them to the internal address of a network. The list of available offers is stored in the network in the form of the distributed table of hashes (distributed hash table, DHT) which is also used in many P2P-protocols for the organization of a distributed database with high accessibility and support of full-text query search and requests of specific messages of a network at other nodes. A distributed graph database is set up over DHT which allows to structure offers by criterias and also to set up storage under these criterias storing and processing only those messages which are interesting to the node user and it is simple to relay remaining messages. Decentralization allows to distribute and reserve all volume of network data between the connected clients without need to be constantly online in it. The network can also connect the offers public trackers to exchange which allows trackers like torent-trackers to place to the third-party interested participants their offers through third-party platforms. The detailed data exchange algorithm in the recommended implementation looks as follows: the advertiser creates an offer, signs it and sends his announcement to network. The nodes connected to it receive the announcement and place the offer at their DHT, so it is included to public database available to all nodes.

10 9 Further, the node which has queue coming to an end places similarly the address and desirable pool of offers for receiving at DHT. The message spreads on network, and clients receiving such requests send new available content in reply again getting in a queue of offer of the client. Each of such requests has variable short lifetime from several minutes to several hours, depending on assessment of a status and speed of the network executed on the client message sender about emptying of queue. Due to that the number of the messages sent to such client in reply for network reset prevention by the same messages with one addressee is reduced. Availability of all messages to all network participants allows to perform complex analytics on campaign efficiency not only for own offer, but also for all content which is posted online. Especially for these purposes some nodes can store all content history becoming supernodes responding with historical data to specially prepared requests of other network clients. Also supernodes can act as resids which are entrusted network nodes storing the fullest picture of users actions using its messages client nodes can carry out fast start and connection to fast nodes of network. TOKEN SALE By performing public token offering we give chance to everyone to take part in creation of new type of lead generation business excluding unnecessary intermediaries in the form of webmasters. Getting adswhy tokens their owner becomes the participant of formation of essentially new approach to realization of advertizing campaigns. adswhy tokens will be brought to the popular exchanges and due to that their liquidity will increase. TOKEN SALE REASONABILITY Project infrastructure demands performing tokens issuing for the platform functioning. Tokensale conducting will allow to organize most effectively the project s internal economy for unlimited system participant number cooperation. In our CPA-platform the token is used as internal currency for adswhy system users encouragement to add its data to the system and for receiving advertizing content and also as one of options of fee of adswhy services and for obtaining some privileges and expanded access for advertisers. Tokens will also be used as internal financial motivation of advertisers and there will be reilized various schemes of encouragement. The main part of tokens within a tokensale will go on sale at a nominal price, the remained initial pool will be spent at initial stage for users rewarding. Further the platform will redeem the required quantity of tokens from the exchange for involvement of new users and also on development of a product and aggressive marketing.

11 10 TOKENSALE STRUCTURE 65% of tokens will be issued during public offering; 14% of tokens will be distributed between developers of system; 11% of tokens will be reserved for payment of first participant rewarding; 5% of tokens will be allocated for payments with partners; 5% of tokens will be spent for marketing and promotion of the project. During public tokensale our team plans to attract up to $1,5 million, i.e. to sell up to 150 million tokens. Unsold tokens will be kept in system for users rewarding. Fund raising during tokensale will be performed by using Ethereum cryptocurrency. After two months from the moment of tokensale end, the exchanges with high cryptocurrency trading volumes will be also added. Public tokensale will be considered successful if the raised sum exceeds $ In case the tokensale is declared as not accomplished, then all funds will be returned to buyers.

12 11 ROADMAP Stage 1: Team selection and global market research. December 2016 February 2017 At this stage the existing CPA-systems analysis was conducted, all their flaws were revealed and the concept of our system was made. We cooperated with a great number of financial consultants and experts in the field of CPA marketing. Further the team of professionals programmers, PR-managers and financial analytics was formed. Stage 2. ICO performing March 2017 April 2017 At the stage No. 2 the adswhy first smart contract will be issued, and there will be declaration about new adswhy token. Within a croud-sale there will be offered 60% of all adswhy tokens, the rest part will be distributed between team, partners, and rewarded as bounty for promotion and marketing of tokensale and also a part will be reserved for first users rewarding (miners). Croudsale is necessary to finance the development of the CPA platform, the related applications and also for initial marketing promotion. Stage 3. System prototype development May November 2017 At this stage, the first CPA platform version and the program will be developed. And the basic system of interaction of the platform with advertisers and users will be realized. Stage 4. Promotion and system expansion November 2017 July 2018 At a stage of promotion and expansion the team of the project will focus on development of the enterprise. The system development will be guided by market requirements and feedback. Also, additional work with users will be carried out, all marketing actions aimed at program implementation into users everyday life will be realized. Also at this stage the list of forms of advertizing will be increased. The revealed system bugs, programs and their structure will be worked through. Stage 5. Version 2.0 From July 2018 By June 2018, it is planned to solve all tasks which were set at the initial stage and to correct the problems revealed during work. At this stage, the work of the team will be focused on project scalability. By this time a large number of advertisers will use our CPA platform at least for the purpose of expenses on marketing and target advertizing. Users will get used to receive bonuses for advertizing viewing.