0

B2AND

WHITEPAPER

March 2018

DECENTRALIZED

VIRAL

MARKETING

PLATFORM

1

TABLE OF CONTENTS INTRODUCTION ............................................... 2

INTERNET ADVERTISING INDUSTRY

OVERVIEW ....................................................... 3

CURRENT MARKET SITUATION AND

FORECASTS ..................................................... 3

REFERRAL MARKETING ................................... 4

WHY BLOCKCHAIN IS THE ANSWER .............. 5

B2AND PLATFORM DESCRIPTION ................. 7

BRIEF OVERVIEW OF CURRENT CENTRALIZED

B2AND PLATFORM ......................................... 7

B2AND MARKETING CAMPAIGN CREATION

WITH B2AND CAMPAIGN CREATION

WIZARD ............................................................ 8

BRIEF OVERVIEW OF PLANNED

DECENTRALIZED B2AND PLATFORM ......... 10

PROJECT TEAM ............................................ 11

PROJECT ADVISORS .................................... 12

B2AND TOKEN ............................................... 13

DESCRIPTION ................................................ 13

TOKEN ALLOCATION ................................... 14

VESTING PERIODS ......................................... 14

TOKEN SALE TERMS ...................................... 15

CAPITAL ALLOCATION ................................ 15

ROAD MAP ..................................................... 16

GENERATIONS OF B2AND PLATFORM ....... 17

1ST GENERATION (CURRENTLY LIVE):

CENTRALIZED PLATFORM ............................ 17

2ND GENERATION: PAYMENT AND

REWARDS ON BLOCKCHAIN, TOKEN

WALLET IMPLEMENTED ................................. 18

3RD GENERATION: MOBILE APPLICATION,

B2AND API AND B2AND CAMPAIGN SMART

CONTRACT CREATED .................................. 19

4TH GENERATION: B2AND CAMPAIGN

TRACKING DEPLOYMENT ON BLOCKCHAIN

....................................................................... 20

LEGAL ASPECTS ........................................... 21

REFERENCES ................................................ 22

2

INTRODUCTION

Nowadays, traditional advertising models do not

fully satisfy contemporary needs of a potential

advertiser. Blockchain technologies represent an

exceptional solution for this problem. The new

concept creates advertisers out of consumers and

generate peer-to-peer advertising earnings

through blockchain award and referral systems.

Due to the blockchain specific nature of enforced

rules, advertising transforms into a maximally

transparent field.

Reward systems tokenization provides additional

incentives for participation in peer-to-peer

advertising, thus, becoming one of the

fundamental enhancement drivers for campaigns.

B2AND is a result-oriented cloud-based online

platform which provides easy-to-use and scalable

services through viral marketing via marketing

campaigns in an innovative and extremely

effective way.

One of the most significant advantages of B2AND

platform is the freedom for advertisers to create

and launch their campaigns anytime they see fit,

establish rewards with the B2AND token, without

integration or development requirements and run

these campaigns independently or along with their

other marketing channels, e.g. such as Facebook,

Twitter, etc.

Besides the reward role of B2AND token, they are

also used as payment for B2AND campaigns.

The purposes of this whitepaper is to elaborate

the B2AND platform fundamental concept and

new ecosystem creation, as well as further

development in terms of the new technological

approach mentioned above.

3

INTERNET ADVERTISING

INDUSTRY OVERVIEW

CURRENT MARKET

SITUATION AND FORECASTS

According to IAB internet advertising revenue

report by PwC [1], the global internet advertising

market demonstrated a steady annual growth of

15-22% throughout the period of 2010-2016.

Up until 2017, the share of internet advertising

expenses was in the level of those for the

television advertising. [2]

Moreover, according to the Dentsu Aegis

communication group findings [3], the share of

internet advertising in 2018 will exceed 50% of the

total advertising market in such countries as

Australia, UK, Denmark, China, the Netherlands,

New Zealand, Norway, and Sweden.

By 2021 the global share of internet advertising

will soar from 36% to 50%.[2]

Source: IAB internet advertising revenue report Source: Magna “Global Advertising Forecast update”

15%

22%

15%

17%16%

20%

22%

0%

5%

10%

15%

20%

25%

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2010 2011 2012 2013 2014 2015 2016

Annual revenue and growth

Revenue(in mil) Growth

36% 40% 42% 45% 47% 50%

38%36% 36% 34% 34% 33%

2016 2017 2018 2019 2020 2021

Global Market Shares by Media Type

Digital Ad Sales Linear Television Print Radio OOH

4

REFERRAL MARKETING

Referral marketing programs are a complex set of

processes that stimulate consumer to support

revenue growth. Moreover, they are the only

marketing channel that gives an opportunity to a

brand to leverage the

power of word-of-

mouth in a

measurable way.

Having the role of a

highly effective

marketing channel,

referral strategies

sustain and promote

extensive customer

experiences that are

the fundamental stone

of marketing. It is safe to say that the main result

of smart marketing is a happy customer:

according to Wharton [4], referral customers have

a 16 % higher lifetime value than non-referred

customers.

Texas Tech University research claims that 83%

of satisfied customers are willing to refer a product

or service but only 29% actually do. [5]

Obviously, having referral rewards in place that

share could be significantly higher.

Here are some of the most successful referral

marketing examples in the world.

UBER: discounted first ride for your friends

Simple, elegant, with a clear call-to-action to refer

friends. Moreover, the page has a bar at the

bottom which is a clever piece of gamification

making you fill up the

progress bar.

EVERNOTE:

premium for friends,

points for you

Evernote’s referral

program awards are

Premium for your

friends and points for

you which you can

use to get either

Premium or increased monthly uploads. Evernote

offers a dual-sided referral award program that

gives people more space and/or Premium

membership.

AMAZON PRIME: $5 for you for your friend’s

purchase

Amazon Prime’s are highly cost-effective:

enrolling new Prime members through a referral

campaign is quite an efficient option as customer

referrals are one of the lowest cost acquisition

channels.

WILLING TO REFER A

PRODUCT OR SERVICE

ACTUALLY DO

5

WHY BLOCKCHAIN IS THE

ANSWER

Customer referral programs represent strategic

steps for any kind of organizations.

Centralized referral programs are not realizing full

potential for several reasons:

account inactivity;

low redemption rates;

time delays;

high transaction, system

management, customer acquisition costs;

low client retention.

We believe, the fundamental reasons for the

inefficiencies mentioned above is the scarcity of

uniform management systems throughout referral

rewards programs, which creates customer

confusion and is a primary cause of members’

lack of activity

.

6

Obviously, consumers seek rewards, thus the

business strategy of gaining referrals/new

customers and their loyalty through rewards

programs is sound. However, these rewards

programs are mostly run inefficiently. An

inadequately organized rewards interaction not

only reduces ROI, but also works in the opposite

direction of raising the number of referrals and

loyalty.

Thus, we are aware of what is behind this scarcity

of implementation efficiency—fragmented and

heavy systems that entirely depend on centralized

regulation requiring the coordination of numerous

parties through trusted intermediaries to push

processes throughout the value chain.

Interestingly, blockchain answers this issue by

excluding trust from the process and

decentralizing it. In a decentralized system

solution, all of the rewards program participants

perform in a contiguous network leaving out

intermediaries.

Due to its design, blockchain maintains streamline

execution and administration of the rewards

programs, providing all participants near-real-time

transparency, throughout the framework of the

permissioned constraints of the program provider.

Taken altogether these aspects should result in

substantial future expense savings that, in our

view, will pay for the design and execution of a

blockchain-based referral (and not only) rewards

program in the medium perspective.

7

B2AND PLATFORM

DESCRIPTION

BRIEF OVERVIEW OF

CURRENT CENTRALIZED

B2AND PLATFORM Advertiser’s side

There can only be one Advertiser for one

campaign.

Advertiser receives a free trial package one time

within one campaign for two-week time period.

The package includes adding up to five email

accounts as a first level on the campaign. Should

the Advertise want to continue the campaign after

free two weeks, he/she can convert the trial

campaign into a standard one. The conversion will

not bring any costs of starting the campaign, but

only standard fees that apply after the trial

expiration, during the campaign run.

There are no limitations on sending messages for

testing purposes to the Advertiser’s own email

account before starting an ad campaign

Consumer’s side

The Consumer has the opportunity to participate

in any campaign without mandatory registration

on the B2AND platform.

Upon registration on the B2AND platform, the

Consumer is able to:

store or import his/her referral network

contacts from such sources as Gmail

directly invite selected contacts to

participate in a marketing campaign

see the rewards statistics of his/her

referral network

subscribe for campaigns based on

personal interests.

There are two levels of rewards:

1. hotlink click – Consumer clicks a hotlink

provided in the campaign message

2. hotlink click by referred contact - when contact

you have referred to the campaign will press the

hotlink.

8

B2AND MARKETING

CAMPAIGN CREATION WITH

B2AND CAMPAIGN

CREATION WIZARD

A. Upon sign-up/sign-in Advertiser

should create/upload start level

recipient email addresses to whom

marketing campaign is targeted. These

email addresses can be

created/uploaded under “Address sets”

and categorized based on Advertiser’s

own preferences.

B. When address set is created;

Advertiser can create marketing

campaign with the following four steps:

1. Description & timing. Describe your

marketing campaign with related terms

& conditions and select the campaign

period.

9

2. Rewards. Describe your marketing

campaign rewards with related terms

& conditions and select related reward

voucher code options.

3. Campaign settings. Select your

marketing campaign settings, e.g.

such as campaign recipient

address sets, campaign category,

location and/or age limitations (if

any) and campaign notifications.

4. Budget. Allocate budget for your

marketing campaign and activate

the campaign.

B2AND campaign creation wizard

will automatically create customized

B2AND campaign e-mail message

and B2AND campaign landing page,

based on the advertiser's selections.

10

BRIEF OVERVIEW OF

PLANNED

DECENTRALIZED B2AND

PLATFORM

Current 1st generation B2AND platform is using

e-mail, as it is built as proof-of-concept platform

and it is cost effective delivery channel. One of the

reason to apply the new model is that advertisers

are often finding it challenging what to offer as

rewards and have asked universal reward option

that could be used globally to reward consumers

and B2C is perfect answer for that. After the

B2AND platform decentralization, we will use

mobile app, which is integrated with wallet to hold

rewards.

2nd generation B2AND platform will have

B2AND token as payment and rewards method.

B2AND wallet is created, where B2AND tokens

can be hold.

3rd generation B2AND will introduce mobile app,

which is to be used to distribute B2AND campaign

via mobile push messages, instead of current

email. Mobile app will also support B2AND wallet.

Moreover, B2AND API is introduced, which

enables advertisers to create and distribute

B2AND campaigns also by using third-party front-

end providers. In addition, Ethereum Smart

Contract is introduced for the B2AND campaigns

to be written to Ethereum blockchain upon

creation and activation, which makes the

information (advertiser, content, rewards,

timeframe, etc.) on the campaigns publicly

available.

4th generation B2AND platform will have

another token for campaign tracking purposes,

which token would have no commercial value.

These tracking tokens will not affect the value of

the B2AND tokens. Using Ethereum based ERC-

20 tokens for tracking purposes leads to

unreasonably high costs because of the high

transaction fees. Moreover, current Ethereum

system is not fast enough for actions requiring

instant confirmation required for our campaign

tracking needs. Thus, we will issue another token

devoted specifically to campaign tracking which

will record the tracking information to blockchain.

Potentially a private blockchain will be introduced

for this purpose.

11

PROJECT TEAM

Jani Laakso CEO and Founder

Jani is a serial entrepreneur with 15+ years proven track record and international market exposure in advising and managing several ICT start-up companies in their growth strategies, international market expansion plans, business development, sales & marketing and finance. Jani has his degree from Turku University of Applied Sciences, Finland, and he is a founder and CEO of B2AND Ltd and co-founder of Finland based software outsourcing company Coderum Ltd. Jani has been a blockchain believer since 2012.

Jere Vuorenala CTO

Jere has a background in designing and developing challenging software architectures for some of the most technologically innovative companies. Jere's proven technical know-how and implementation skills are trusted by MNCs that are leaders in their own specific industries. Jere has his educational background from Tampere University, Finland and he is an acting CTO of B2AND Ltd. Jere is a blockchain enthusiast in and outside his work.

Jemayel Tucay Marketing Manager

Jem has a background to work with some of the world's leading technology and consulting companies, like e.g. Convergys, Mercer, etc. in various customer service roles out from Singapore and Manila. Jem has her economics and mass communication/media studies degrees from The Philippines and she is a Marketing Manager of B2AND Ltd.

12

PROJECT ADVISORS

Hochun Kim

Hochun is a highly respected professional on viral marketing, serving as Professor and Department Head of Viral & SNS Marketing CEO Program at Seoul Venture University, Korea, along with his roles of Head Director of Korea Smart Academy Institute (KSAcademy) and Moderator at Startup Store Group. Hochun's broad experience from business side comes from managing own high-tech companies in Korea and acting as operations head for MNCs, like Intel. Hochun has his Computer Science degree from Pusan National University, Korea.

Anthony Lam

Anthony has over 20 years of professional sales and management experience in the ICT industry with successful track record covering multiple industries, like telcos, ISV, banking, finance, government, retail, trading, property, securities, logistics, etc. Anthony is well adapted to multi-cultures in a complex selling and management environment with extensive business connections and client relationships, having served in management positions in various MNCs, like Oracle. Anthony has his Computing and Finance degree from Macquarie University, Australia.

Mika Jokela

Mika is a professional with extensive experience to establish, manage and grow operations of several ICT and high-tech companies. Mika's knowledge on blockchain business comes through his related activities in advising companies within the field. Having gone through successful exit, Mika has also been active start-up investor, covering portfolio of over 20 companies. Mika has his degrees from Turku University of Applied Sciences, Finland and his Master of Electronic Commerce degree from Hong Kong.

13

B2AND TOKEN

DESCRIPTION

B2AND token is an ERC-20 standard token

deployed on Ethereum blockchain.

The B2AND team chose Ethereum for the

following reasons:

- Ethereum provides advanced environment

for decentralized apps (Dapps)

development

- Ethereum is the most well-known and

used blockchain with smart contracts and

it has wide selection of supported wallets

- Ethereum has the largest community of

blockchain developers sharing tools, best

practices, and knowledge about Dapp

development

- Ethereum is the best provider of tooling to

maintain the interaction with Dapps

B2AND token (B2C) roles are:

- payment, i.e. in the future all B2AND

campaigns are to be paid with B2Cs

- rewards, i.e. in the future all campaigns

are offering B2Cs as rewards. Additionally,

advertiser may also consider to offer other

type of reward against B2C, if they wish

so.

Consumers are not required to make any kind of

payments in order to participate in any B2AND

campaigns. By participating in campaigns and

making referrals, consumers receive B2Cs from

local and global advertisers.

14

TOKEN ALLOCATION

Token Sale = 65%

B2AND Project Team = 9%

Partners & Advisors = 4%

Bounties = 2%

Reserve = 20%

VESTING PERIODS

Partners & Advisors

•6 months

B2AND Project Team: 50%

•6 months

B2AND Project Team: 50%

•12 months

15

TOKEN SALE TERMS

Start Token Sale 23 April

2018

Minimum transaction amount

0,1 ETH

Bonus program:

End Token Sale 22 May 2018

Maximum transaction amount

4.000 ETH* 30% 1. Week

Acceptable currencies

ETH Soft gap 1.000 ETH 25% 2. Week

Total token issuance

100.000.000 B2C

Hard gap 10.000 ETH 20% 3. Week

Number of tokens offered on Token

Sale

65.000.000 (65%) B2C

Tokens exchange rate

1 ETH = 5.000 B2C

* for those, who would like to invest more, please contact us for special deal

CAPITAL

ALLOCATION

Development = 45%

Marketing and sales = 30%

Operating expenses = 10%

Acquisitions and partnerships = 5%

Legal expenses = 4%

Other expenses = 4%

Bounty program = 2%

45%

30%

10%

5%

4%4%

2%

Development

Marketing and sales

Operating expenses

Acquisitions andpartnerships

Legal expenses

Other expenses

Bounty program

16

ROAD MAP

until Q4 2017 Private investment of 100k Euro secured from Hong Kong

EAS (Estonian government) grant approved

Entirely functional 1st generation B2AND commercial platform launched

Registered advertisers from five continents

B2AND decentralized platform concept created based on the feedback on the

existing B2AND platform

Q1 2018 B2AND Token Sale preparations started

Q2 2018 B2AND Token Sale

Q2-Q3 2018 Applying B2AND token listings on cryptocurrency exchanges

Q2-Q4 2018 B2AND platform to be decentralized on blockchain, B2AND wallet to be created

and B2AND token to be accepted as B2AND campaign payment and campaign

rewards incentive

Q42018 2nd generation B2AND platform launch

Q1-Q2 2019 B2AND API and B2AND mobile application with wallet integration as well as

B2AND campaign smart contract to be created

Q2 2019 3rd generation B2AND platform launch

Q3-Q4 2019 Separate B2AND rewards tracking token (with no commercial value) and related

private blockchain network (if required) for campaign tracking purposes to be

deployed

Q4 2019 4th generation B2AND platform launch

Q1 2020 and

further

Further B2AND platform development and feature improvements deployed, e.g.

new localization versions, new campaign distribution channels, partnerships with

online marketing agencies and other interest groups, etc.

17

GENERATIONS OF

B2AND PLATFORM

1ST GENERATION (CURRENTLY LIVE): CENTRALIZED

PLATFORM

Sign-up

(as Advertiser)

Description &

timing

E-mail message and

landing page automatic

creation

Rewards

(participation/

referral)

Budget &

payment (credit

card, PayPal)

Settings

Define address set for the B2AND campaign

B2AND campaign creation with B2AND

campaign wizard

Campaign activation (B2AND approval

needed)

E-mail

messages

distribution

Campaign

landing page

as a referral

point

Advertiser sets

the rewards (no

offer from

B2AND)

Credit card and

PayPal as

payment

methods

18

2ND GENERATION: PAYMENT AND REWARDS ON

BLOCKCHAIN, TOKEN WALLET IMPLEMENTED

Sign-up (as Advertiser)

Description &

timing

E-mail message and

landing page automatic

creation

Rewards

(B2AND tokens)

Budget &

payment

(B2AND tokens)

Settings

Define address set for the B2AND campaign

B2AND campaign creation with B2AND

campaign wizard

Campaign activation (B2AND approval

needed)

E-mail

messages

distribution

Campaign

landing page

as a referral

point

B2AND

tokens as

rewards

B2AND

tokens as

payment

method

B2AND wallet

to hold

B2AND

tokens

19

3RD GENERATION: MOBILE APPLICATION, B2AND API AND

B2AND CAMPAIGN SMART CONTRACT CREATED

Sign-up (as Advertiser)

Description &

timing

Mobile push

message and

landing page

automatic

creation

Rewards

(B2AND tokens)

Budget &

payment

(B2AND tokens)

Settings

Define address set for the B2AND campaign

B2AND campaign creation with B2AND

campaign wizard / third-party front-end

provider

Campaign activation (by front-end provider)

Mobile push

messages

distribution

Referrals

among

participants

without a

landing page

B2AND

tokens as

rewards

Campaign

creation

outside

B2AND

platform

using B2AND

API

Smart Contract

creation on

Ethereum

blockchain

Smart

Contract

creation on

Ethereum

blockchain

20

4TH GENERATION: B2AND CAMPAIGN TRACKING

DEPLOYMENT ON BLOCKCHAIN

Sign-up (as Advertiser)

Description &

timing

Mobile push

message and

landing page

automatic

creation

Rewards

(B2AND tokens)

Budget &

payment

(B2AND tokens)

Settings

Define address set for the B2AND campaign

B2AND campaign creation with B2AND

campaign wizard / third-party front-end

provider

Campaign activation (by front-end provider)

B2AND campaign tracking

deployment on blockchain with

separate tracking token (no

commercial value)

Smart contract

creation on

Ethereum

blockchain

Selection will be made depending

on the suitability (price and speed of

transaction) of commercially

available blockchains on that time

vs implementation of own separate

private blockchain for campaign

tracking purposes

21

LEGAL ASPECTS

The information contained in this white paper do

not constitute a prospectus or offering document,

or an offer to sell or an invitation, advertisement or

solicitation of an offer to buy securities.

B2AND tokens are not being structured or sold as

securities and B2AND tokens acquisition does not

represent an investment agreement. That is,

B2AND tokens cannot be considered as

investments or securities. B2AND token

possession does not imply share ownership or

ownership/management/other rights related to

B2AND LTD or B2AND platform. B2AND tokens

hold no rights in B2AND LTD or B2AND platform.

Any contributions made on B2AND Token Sale

should be made in accordance of B2AND Token

Sale Terms & Conditions.

This white paper is for information purposes only

and is subject to change. These projections are

forward-looking, are subject to significant

business, economic, regulatory and competitive

uncertainties and contingencies, many of which

are beyond the control of B2AND LTD and its

Token Sale project team, and are based upon

assumptions with respect to future decisions,

which are subject to change.

22

REFERENCES

1. IAB/PwC. (2016). Internet Ad Revenue Report.

2. Magna. (2016). Global Advertising Forecast update. Retrieved from

https://www.magnaglobal.com/wp-content/uploads/2016/12/MAGNA-December-Global-Forecast-

Update-Press-Release.pdf

3. Network, D. A. (2017). Ad Spend Forecasts. Retrieved from

http://www.dentsuaegisnetwork.com/danadspend2017

4. Philipp Schmitt, B. S. (2010). Referral Programs and Customer Value. Retrieved from

https://www.ericstownsendmarketing.com/wp-content/uploads/2010/09/referral_programs1.pdf

5. University, T. T. (2015). Why Referral Marketing Works and How to Use It. Retrieved from

http://today.ttu.edu/posts/2015/04/why-referral-marketing-works

23

B2AND Limited Uus-Sadama 21 10120 Tallinn

ESTONIA

https://b2and.com/

https://ico.b2and.com/