Dentsu and Focus Media in China joint venture

BEIJING - In a move to consolidate its digital advertising operations in China, Dentsu has joined forces with Hong Kong-based Hua Kuang advertising, a subsidiary of Focus Media, to establish a dedicated online agency in Beijing.

The chief function of the new agency, tentatively called Digit Ones, will be to provide Internet advertising-related services to existing Dentsu clients in China.

Dentsu currently has three major advertising companies in China – Beijing Dentsu Advertising, Beijing Oriental Rihai Advertising, and Shanghai Oriental Partner Advertising – but is seeking to integrate all the agencies’ digital services into a single operation.

The new agency, in which Dentsu will hold a majority share, will draw on Focus Media’s Internet advertising resources to strengthen its technological and media sourcing capabilities. Focus Media is currently the leading advertising group in China in terms of revenue.

The new agency is expected to open for business in June. Its chairman and managing director have yet to be assigned.