Interactive marketing and technology services firm 24/7 Real Media Inc. partnered with Dentsu Inc. to offer search engine marketing in Japan through a joint venture called K.K. 24-7.
Dentsu holds an undisclosed minority interest in the Tokyo-based venture. New York-based 24/7, which opened its Tokyo office in February, controls the majority stake. Financial terms of the deal were not disclosed.
Dentsu, Tokyo, will contribute its knowledge of Japanese marketing as well as industry connections to K.K. 24-7. The new firm also will become the exclusive supplier of search services to Dentsu clients. For its part, 24/7 will license its Decide DNA technology to the alliance, along with search engine marketing expertise and operational management.
Jae Woo Chung, president of 24/7 Real Media Asia and head of 24/7's Tokyo office, is representative director and chief executive of K.K. 24-7.
Japan is Asia-Pacific's largest online advertising market. The country has the second-highest number of online users after China and the most broadband users in the Pacific Rim, according to PricewaterhouseCoopers data. The Japanese paid search market is expected to reach $550 million in spending this year.
Also, Japan is the world's No. 2 online advertising market after the United States, with revenue projected to grow 20 percent this year to $1.7 billion.
The 15,000-employee Dentsu Group, which includes its self-named agency, is the world's fifth-largest advertising conglomerate. Its more than 6,000 domestic and international clients last year brought in revenue of about $3 billion.
Mickey Alam Khan covers Internet marketing campaigns and e-commerce, agency news as well as circulation for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters