LG eyes blockchain overhaul of digital advertising

LG Electronics is building a blockchain-based advertising platform on its own Arbitrum layer-2 network as the technology giant seeks to modernise how digital advertising inventory is bought, sold and measured.

The project was developed by LG's blockchain research division and has already been tested through a pilot programme with an unnamed Japanese advertising agency, with a broader commercial launch now under consideration.

The platform creates a shared ledger that records advertising inventory and tracks audience interactions, potentially reducing the manual reconciliation processes that still underpin much of the digital advertising industry.

The opportunity is significant, with Dentsu forecasting global digital advertising spending will reach $740 billion in 2026 and account for approximately 73% of a media market expected to surpass $1 trillion.

Samuel Byungsun Park, who leads LG Electronics' blockchain research department, said the company is assessing whether the technology delivers meaningful benefits for advertisers, publishers and audiences before committing to a full-scale rollout.

The initiative represents LG's latest blockchain venture following previous projects including its Wallypto digital asset wallet and an NFT trading television patent tied to its consumer electronics business.

LG joins a growing list of companies building dedicated blockchain infrastructure, alongside projects from Stripe, Robinhood and Circle, while Arbitrum co-founder Steven Goldfeder said blockchain technology could help automate advertising transactions and reduce operational friction across the industry.

At the time of reporting, Arbitrum price was $0.08326.