Verifiable documentation of digital advertising performance
Sector: Tertiary sector · Industry: Electronics and electrical industry · Organisation: LG Electronics, Hakuhodo, Arbitrum · Maturity level: Pilot
LG Electronics and the agency Hakuhodo tested an on-chain advertising network based on Arbitrum in Japan. Real users tested interactions, the operating model and the accompanying performance analysis under live conditions. Because the results were still being evaluated when the source was published, no concrete savings or final impact on fraud prevention were reported.
Documentation status
- Project status: Pilot (as of 02 October 2026) — Live pilot with real users in Japan; results and permanent rollout not yet published.
- Evidence: Evidence medium
- Editorial review: pending
Description
LG Electronics, together with the advertising agency Hakuhodo, tested a decentralised advertising network to record proofs of performance directly on a blockchain. As part of the Japanese pilot project, real consumers interacted with the system whilst the partners trialled the operational model. The objective of this initiative is to provide advertisers and publishers with a reliable and jointly verifiable data foundation.
The project initiated by LG Electronics is based on a collaboration with the advertising agency Hakuhodo and the Blockchain Research Lab. Technologically, the platform relies on the Ethereum Layer 2 network Arbitrum to record interactions quickly and cost-effectively. During the testing phase in Japan, real end users participated, allowing the practical operating model to be tested under real-world conditions. The focus was primarily on delivery as well as the technical logging and evaluation of relevant interaction metrics. Because the results were still being evaluated in detail at the time of publication, no quantified data regarding reduced fraud rates or monetary savings are available to date.
Perspectives
B2B — organisations perspective
Through shared access to an onchain network, companies gain a neutral data layer for their advertising campaigns. This enables clients and executing agencies to verify performance data without time-consuming bilateral data reconciliations.
B2C — consumers perspective
End consumers were involved as active testers for the interaction processes within the scope of the Japanese pilot. However, direct functional benefits for consumers were not the primary focus of the infrastructure test.
Employees perspective
Employees in ad operations teams will no longer need to consolidate delivery reports through time-consuming manual work in future. The use of consistent blockchain data records noticeably simplifies day-to-day reporting.
Benefits
General
- Increased traceability in digital ad delivery
- Shared data foundation for agencies and advertisers
- Automated recording of interaction proofs via smart contracts
B2B — organisations
- Reduced manual audit effort for campaign billing
- Minimisation of discrepancies between client and agency reporting
Employees
- More efficient workflows for validating delivery reports
- Clear technical evidence in case of campaign discrepancies
Challenges
General
- High coordination effort when integrating proprietary adtech systems
- Need for sustained commercial viability amidst highly volatile transaction fees
B2B — organisations
- Dependence on broad acceptance by established media agencies
- Lack of final metrics to evaluate the actual ROI
Employees
- Required development of technical know-how in handling Layer 2 networks
Technology foundation
The system uses the Layer 2 blockchain Arbitrum to record high transaction volumes of digital advertising interactions cost-effectively and tamper-proof. Smart contracts handle the logging of impressions and user actions, ensuring that proofs of performance remain transparently verifiable between advertisers and agencies.
Implementation examples
Onchain advertising network from LG Electronics and Hakuhodo
Advertisers and agencies in the digital advertising market suffer from opaque delivery data and diverging measurements, which hampers reliable proof.
LG Electronics, together with Hakuhodo, piloted an onchain advertising system on Arbitrum to transparently log digital advertising performance in Japan with the involvement of real users.
As part of a strategic collaboration, LG Electronics' Blockchain Research Lab developed a decentralised advertising platform based on Arbitrum technology. Together with the renowned agency Hakuhodo, the network was tested in Japan with real users for operational stability and performance analysis. The evaluation of the test phase was still ongoing at the time of reporting, which is why final metrics regarding fraud prevention or cost reductions are still pending.
Creation of a neutral verification authority for campaign interactions to resolve discrepancies between advertisers and publishers.
Tags
Digital Advertising, Arbitrum, Transparency, AdTech, Smart Contracts