An advertisement of Alibaba.com. Photo: Flickr

Focus Media, the largest out-of-home advertising network in China, has signed an agreement with Alibaba Network Technology Co. Ltd. and its related party Alibaba Group, to carry out a business cooperation not exceeding 5 billion yuan (US$740 million) in the coming three years, The Paper reported.

The two parties will work together to build a new online advertising system, ensuring a smooth flow of advertising to support Alibaba’s new “Uni Marketing” strategy.

Also, they will jointly develop interactive technology and the application of facial recognition and electronic screen recognition. The specific details will be further negotiated.

On July 18, Alibaba bought into Focus Media in a deal valued around 15 billion yuan. Following that, Alibaba and its related parties have become the second largest shareholder of Focus Media, holding a 10.33% stake in the advertiser.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.