South Korean tech giant LG Electronics is partnering with Ethereum layer-2 network Arbitrum to develop a blockchain-powered advertising network, targeting the global digital ad market valued at $679 billion.
According to Fortune, Arbitrum will provide a shared database of ad inventory for advertisers and publishers, tracking consumer interactions with ads. LG plans to launch the service by 2026.
Park Samuel Byungsun, head of LG's blockchain research lab, said the team is evaluating whether this model can deliver tangible value to advertisers, publishers, and viewers.
Disintermediation: The Core Advantage of Blockchain Ads
Traditional digital ad networks rely on costly intermediaries—including ad agencies, demand-side platforms (DSPs), and supply-side platforms (SSPs)—to automate ad space transactions. Blockchain ad networks use smart contracts to streamline these processes, cutting intermediary costs and giving advertisers direct access to campaign performance and audience data.
Arbitrum co-founder Steven Goldfeder noted that this approach essentially runs the marketplace automatically via software, without human intervention.
Approaching a $700 Billion Market Opportunity
Dentsu projects global digital ad spending at $679 billion in 2025, accounting for 68% of total ad expenditure. LG's entry reflects a broader push for disintermediation: as ad budgets shift further online, reducing middle-layer costs becomes critical for efficiency. The move parallels X's recent launch of an AI-powered ad platform, as major tech firms redefine ad distribution through different technological paths.
LG's Crypto Journey: From Consumer Apps to Enterprise Infrastructure
LG has explored crypto for nearly a decade: in 2018, LG CNS launched its own blockchain Monachain for digital verification, payments, and supply chain management; in 2022, it developed the Wallypto crypto wallet on Hedera Hashgraph, paired with the LG Art Lab NFT platform to let users display digital art on TVs; in June 2025, the NFT platform shut down, followed by Wallypto's termination in September.
The partnership with Arbitrum marks LG's shift from consumer-facing applications like NFTs and wallets toward building enterprise-grade infrastructure.
Market Reaction and Token Performance
After the announcement, Arbitrum's official account on X confirmed the collaboration. ARB tokens rose 5.44% on Thursday.
LG's move demonstrates blockchain's potential in advertising beyond proof-of-concept, targeting a near-$700 billion market directly.