Analysis of ICO CryptoAds
ICO dates: 16.06.2018 - 15.07.2018.
CryptoAds is decentralized online advertisement platform which supports many kinds of advertisement blocks (different videos, textual ads, applications etc) for direct trading between advertisers at one side, and traffic generators, at other side. Current advertisement systems have, according the founders’ opinion and market researches, these issues:
- Income generated by botnet systems generating fraud clicks on advertisements, became USD 16,4 billion in 2017 (according Business Insider article)
- High commission of ads ‘middlemen’ – different resellers of advertisements (30-60%, according estimations of founder)
CryptoAds can give a solution for these issues. Platform, based on blockchain technology, can give advertisers direct access to manage their campaigns based on reputation marks of each system user.
Reputation will be stored in blockchain system for preventing any fraud actions with them.
CryptoAds token will be internal currency for this ecosystem; advertisers will buy tokens for performing payments into the CryptoAds system.
Final launch was planned on January 2019. Concept of product was created in 2011; cloud platform was launched in 2013.
According the WP, only 28% of tokens issued will be sold during ICO. 25% will be stored for publishers/partners rewards; 20% - for users rewards. 15% will be reserved for supporting token stability on open market. 12% will be used for team and bounty program.
Funds received will be disturbed mostly on platform development (50%) and marketing (30%).
As revenue, there will be a commission as 1% from advertisement campaign budget. Founder believes that will give him more than USD 220 million revenue per year with conquering 10% of all online advertisement market, and he plans to start acquiring other advertisement networks at April 2019 – only 4 months later final release of his system.
There are no marketing strategies pointed in WP for these ambitious plans, so, according the opinion of expert-coin.com, this business plan is very optimistic and probably will not perform as planned.
Founder didn’t describe his marketing strategy – only ambitious plans to conquering at least 10% of global online advertising market (without its segmentation on countries, industries, other kinds). And it is very strange, because without clear marketing strategy – any sales plans have insufficient basis and with high probability will not be performed. Maybe it is because there are no selected sales & marketing person in the project team.
Team founder have startup development experience in telecommunications market – VoiceIP, billing, big data etc. Team is not balanced because there are no financial and marketing positions, so it have negative impact on presented project documents – WP have neither clear marketing strategy, nor detailed business plan.
The Vision of the Market
WP contains brief research of global online advertisement market its trends, current and forecasted volumes. I.e. in 2018 44% of all advertisement expenses will be related to online advertisements which means USD 269,85 billion, and in 2019 – year of the project launch – this value will be USD 304,34 billion. Also there is a forecast of mobile video traffic fast growing.
So, according this brief research, all these volumes probably can belong to CryptoAds project – but there are no ways how to reach this goal.
Understanding of the Target Audience
Founder gave no portrait of potential customer – maybe because this is any user of mobile advertisement, any private person or company who wants to increase user traffic on their web resources. But, each kind of customer – private/corporate, B2C/B2B, cheap/luxury, travel/food and many, many other kinds of segmentation needs different strategy for selling them product, but this was completely no described in WP.
Main competitive advantages of product are:
- Less expensive than existing products – only 1% commission versus 30-60% of platforms expenses
- Direct control of advertiser over his campaigns – target audience, web places etc.
- Reputation system locked in blockchain which will help to perform anti-fraud actions
But there is one serious question – if founder understands importance of target audience segmentation and direct managing by advertisers of campaigns’ targets, why he didn’t performed this segmentation and deep marketing research in his own WP?
Project strong sides: interesting idea of reputation-managed online advertisement plaftform; price on advertisement campaigns less currently average on market; direct way from advertiser to target audience.
Project weak sides: no clear marketing strategy, no business plan, ambitious sales plans without any basis, lacoons in project team, long way from ICO to final release.
So our position is negative.