Interactive marketing and technology firm 24/7 Real Media and Japan's largest advertising company, Dentsu, yesterday announced the establishment of K.K. 24-7 Search, a joint venture that will deliver search engine marketing services to the Japanese market. Financial terms were not disclosed, but the announcement said Dentsu owns a significant minority interest in the partnership, which simultaneously entered into an agreement to be the exclusive provider of SEM services to Dentsu's extensive client base.

The Dentsu Group is reportedly the fifth-largest advertising group in the world with more than 6,000 domestic and global clients and annual revenues of some $3 billion. Dentsu subsidiaries and affiliated companies, including Publicis Groupe S.A., provide it with a presence in North America, Europe and Asia.

Dentsu will contribute its Japanese marketing industry knowledge and connections to the joint venture, and consign to it all SEM services provided to Dentsu clients. 24/7 Real Media will license its Decide DNA technology to the joint venture and provide search engine marketing expertise and operational management.

Jae Woo Chung, president of 24/7 Real Media Asia and head of the company's Tokyo office, will serve as Representative Director and will head the new venture.

Japan is Asia/Pacific's largest online advertising market and the second largest globally (behind the U.S.); revenues are projected to increase nearly 20 percent to $1.7 billion by the end of this year. The Japanese paid search market is expected to reach $550 million this year.

Japan has the second-highest number of internet users after China (Beijing Dentsu Advertising is the top agency in China based on billings and revenue), and the highest number of broadband internet users in the Pacific Rim, according to PriceWaterhouseCoopers.