# Verifiable documentation of digital advertising performance

> 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.

**Sector:** Tertiary sector · **Industry:** Electronics and electrical industry · **Organisation:** LG Electronics, Hakuhodo, Arbitrum · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/lg-electronics-digitale-werbeleistung-ueberpruefbar-dokumentieren

## Documentation status

- **Project status:** Pilot
- **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.

## Benefits

- Reduced manual audit effort for campaign billing
- Minimisation of discrepancies between client and agency reporting
- Increased traceability in digital ad delivery
- Shared data foundation for agencies and advertisers
- Automated recording of interaction proofs via smart contracts
- More efficient workflows for validating delivery reports
- Clear technical evidence in case of campaign discrepancies

## Challenges

- Dependence on broad acceptance by established media agencies
- Lack of final metrics to evaluate the actual ROI
- High coordination effort when integrating proprietary adtech systems
- Need for sustained commercial viability amidst highly volatile transaction fees
- 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.

## Sources

- [LG Electronics Pilots Onchain Advertising Network on Arbitrum](https://blog.arbitrum.io/lg-electronics-pilot/)
- [LG Electronics is developing a blockchain-based ad platform with Arbitrum](https://fortune.com/2026/06/11/lg-electronics-blockchain-arbitrum-ad-advertisements-platform/)