South Korea’s LG will roll out a blockchain advertising network! Seize the $700 billion digital advertising market through on-chain automation

South Korea's LG Electronics announces partnership with Arbitrum to build a dedicated L2 network, launching a blockchain advertising platform. This move targets the $713.4 billion digital advertising market in 2026, aiming to capture the future of advertising automation.

South Korea's LG Electronics collaborates with Arbitrum to build an L2 network

According to Fortune magazine, South Korean tech giant LG Electronics announced it is developing a blockchain advertising network to change the way advertising is delivered and sold.

LG Electronics revealed that the project is led by its blockchain research lab and has completed a pilot program with an unnamed Japanese advertising agency.

To develop the platform, LG Electronics partnered with Ethereum Layer 2 network Arbitrum to create a dedicated Layer 2 network, enabling low-cost batch transaction processing. They are currently evaluating whether this approach can bring tangible value to advertisers, media publishers, and audiences.

Image source: Arbitrum South Korea's LG Electronics collaborates with Arbitrum to build an L2 network

LG Focuses on Digital Advertising Automation Opportunities

At the end of last year, Japanese advertising giant Dentsu forecasted that by 2026, global advertising spending will surpass $1 trillion for the first time, with the digital advertising market reaching $713.4 billion, growing at an expected rate of 6.7%, accounting for 68.7% of total global ad spend.

The advertising industry is also heavily adopting AI tools. Over 80% of marketing executives now see media as a core driver of business growth and are actively using AI and agentic AI to optimize marketing efficiency.

Image source: Dentsu report — by 2026, global advertising expenditure will surpass $1 trillion, with the digital advertising market reaching $713.4 billion

In the era of advertising automation, LG's blockchain advertising platform will provide advertisers and publishers with a shared ad inventory database and record audience interactions with ads.

Steven Goldfeder, co-founder of Arbitrum developer Offchain Labs, stated, "The new LG blockchain advertising platform helps improve the efficiency of the ad sales process. The market can operate through software automation, eliminating the need for manual intervention and manual reconciliation."

Shift from Renting to Building, Corporate Chains on the Rise

As U.S. cryptocurrency regulations become more friendly, large enterprises are gradually moving from renting blockchain space to building their own chains.

For example, fintech giant Stripe and venture capital firm Paradigm are developing the blockchain Tempo; stablecoin issuer Circle is working on a blockchain called Arc; online broker Robinhood has partnered with Arbitrum to launch a dedicated chain for tokenized stocks, and even financial giant JPMorgan Chase has its own blockchain division and private chain.

• **Related report: **Tempo Chain Emerges! Ethereum core developers jump ship, Stripe raises $500 million in funding

From Wallets to NFT TVs, LG Continues Consumer Blockchain Deployment

Finally, LG Electronics, which is building its own blockchain, has been experimenting with blockchain technology for years. As previously reported by Crypto City, LG Electronics launched a cryptocurrency wallet called Wallypto and filed patents for NFT trading TVs integrated with consumer devices.

Additionally, LG Electronics partnered with new media artist Refik Anadol in May 2022 to display NFT art on transparent OLED TVs, competing with Samsung Electronics, which also launched a TV NFT platform, in the smart home space.

LG Has Been Deeply Involved in Blockchain Projects for Years

Going further back to 2020, LG Electronics participated in the Hedera blockchain co-founded by Leemon Baird, becoming the 14th node on the network, alongside international companies like Google, IBM, and Boeing, participating in network governance.

LG's subsidiary LG CNS also signed a memorandum of understanding with U.S. decentralized technology firm Evernym to jointly develop a blockchain-based digital identity system for international driver’s licenses and passports.

As early as 2017, LG tested the R3 Corda blockchain platform and participated in a cobalt ore tracking pilot project based on Hyperledger Fabric in 2019, demonstrating its long-term and diverse engagement in blockchain technology.