Dentsu, 24/7 Real Media in SEM Partnership

Japan’s largest advertising company, Dentsu, has partnered with U.S. online ad technology firm 24/7 Real Media. The joint venture, to be called K.K. 24-7 Search, will deliver SEM (define) services to the Japanese market.

Financial specifics of the deal weren’t divulged, but 24/7 Real Media will be the majority owner of the joint venture. Dentsu will have “a significant minority interest.”

24/7 Real Media will contribute SEM technology, expertise, and management to the venture, while Dentsu will contribute its contacts and its customer base. 24-7 Search will be the exclusive SEM provider to Dentsu clients, which number around 6,000, according to the company. Jae Woo Chung, president of 24/7 Real Media Asia and head of the company’s Tokyo office, will lead the new company as representative director.

24/7 Real Media chairman and CEO David Moore painted the deal as an opportunity to quickly become the leader in the Japanese paid search market and grow revenue. Japanese paid search spending is expected to reach approximately $550 million in 2005, according to Dentsu’s research firm.

“SEM is currently forecasted to achieve the highest growth rate within the Japanese online advertising market,” said Hideyuki Nagasawa, director of Dentsu’s interactive communications division, in a statement. “We believe the new company is poised to become a powerful leader in the Japanese SEM market.”

24/7 Real Media first established a presence in Japan with the opening of its Tokyo office in February 2005. Its 24/7 Search division offers technology for bid management, search content feed creation, and organic search.

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