(SeaPRwire) – By: Oliver Hawthorne
Consumer device giants are starving for new recurring revenue. Ad tech is riddled with middlemen, fraud, and wasted spend. Most corporate blockchain projects end up as overpriced solutions looking for problems. This move from LG cuts straight to a real, unaddressed pain point for big hardware brands.
LG runs an in-house dedicated blockchain research lab. It is building a blockchain-based network specifically for placing and selling ads. It already piloted the project with an unnamed Japanese ad agency. LG partnered with Arbitrum, an Ethereum layer-2 protocol, to build its own low-cost layer-2 network. The platform shares ad inventory data and tracks user ad interactions for all parties. LG will explore commercial launches later this year. More big US companies are building their own blockchains as regulation softens. Stripe built Tempo with Paradigm, Circle is building Arc, and Robinhood is building an Arbitrum-based chain for tokenized equities.
LG controls hundreds of millions of connected consumer devices. It owns one of the largest untapped pools of first-party ad inventory in the industry. By owning the full ad blockchain stack, LG cuts out middlemen that take large cuts of ad revenue. It keeps more margin for itself while offering more transparency to advertisers. Only companies that control end-user distribution have any real use for their own blockchain.
Author bio: Oliver Hawthorne, Principal Correspondent at an international tech review covering enterprise web3 and ad tech.