LG partners with Arbitrum to build a blockchain advertising network targeting the $679 billion digital advertising market

LG Electronics collaborates with Ethereum Layer 2 Arbitrum to build a blockchain advertising network, aiming to reshape the $679 billion global digital advertising market through decentralization.
(Background summary: LG Mobile's final chapter » Ended updates after June 30, reviewing the golden history and transformation of the former third-largest king)
(Additional background: Elon Musk strives to regain advertisers! X platform launches a new "AI Advertising Platform," with revenue projected to reach $2.46 billion by 2026)

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• Core advantages of blockchain advertising: decentralization
• Market size and opportunities
• LG’s crypto layout trajectory
• Market response

South Korean tech giant LG Electronics is partnering with Ethereum’s Layer 2 network Arbitrum to jointly develop a blockchain-based advertising network, targeting the $679 billion global digital advertising market.

According to Fortune’s report on Thursday, Arbitrum will provide a shared ad inventory database for advertisers and media, and track consumer interactions with ads. LG plans to launch this service by 2026.

Park Samuel Byungsun, head of LG Electronics’ Blockchain Research Laboratory, stated:

We are evaluating whether this approach can bring tangible value to advertisers, media, and audiences.

Core advantages of blockchain advertising: decentralization

Traditional digital advertising networks rely on expensive intermediaries to automate the buying and selling of ad space, involving multiple layers such as ad agencies, demand-side platforms (DSP), and supply-side platforms (SSP).

Blockchain advertising networks automate these processes through smart contracts, reducing intermediary costs, and allowing advertisers to directly track ad performance and audience interaction data.

Steven Goldfeder, co-founder of Arbitrum, told Fortune: “This essentially means you can automate this market with software, without human intervention.”

Market size and opportunities

According to global advertising giant Dentsu’s estimates, digital ad spending worldwide will reach $679 billion in 2025, accounting for 68% of the total advertising market.

LG’s decision to enter the blockchain advertising space at this time reflects the traditional industry’s recognition of decentralization: as advertising budgets continue to shift toward digital, reducing middlemen costs becomes key to improving efficiency.

This also aligns with the recent strategy of X platform launching an AI advertising platform, as major tech companies are redefining ad distribution models through different technological approaches.

LG’s crypto layout trajectory

LG’s exploration in the crypto field has spanned nearly a decade:

• 2018: LG CNS launched its own blockchain “Monachain,” used for digital verification, payments, and supply chain management
• 2022: Developed the Hedera Hashgraph-based crypto wallet Wallypto, paired with LG Art Lab NFT platform, allowing users to display digital art on their TVs
• June 2025: NFT platform shut down, followed by Wallypto ceasing operations in September of the same year

This collaboration with Arbitrum signifies LG’s shift from consumer applications like NFTs and wallets toward enterprise-level infrastructure development.

Market response

After the announcement, Arbitrum’s official account confirmed the partnership on X, and the ARB token rose 5.44% on Thursday.

LG Electronics demonstrated the practical application potential of blockchain technology in advertising through this partnership, moving beyond mere concept validation and directly targeting a nearly $700 billion market.