Digital: Digital leagues

Bureau's (IAB) Engage 2005 conference. It is testament to how far, and
how fast, the digital sector has developed.

The industry's growth in the past year has been remarkable. The IAB's
latest figures, released earlier this month, show that marketers spent
£490m on online advertising between January and June 2005, a 60%
year-on-year rise and more than they spent on the medium during the
whole of 2003.

The stand-out sector has been search marketing, which has come from
nowhere to become the biggest online advertising category, worth £258m in 2004.

Its success has helped fuel growth across the online sector because for
many clients, search acts as a gateway. Its simplicity and
accountability - the effectiveness of a sponsored link can be measured
by how many sales it produces - has attracted new advertisers online,
and encouraged them to experiment with other digital techniques.

Growing broadband penetration - currently standing at about 50% - means
the options open to online advertisers are expanding. Rich-media
campaigns, streaming video and virals are now accessible to far more
than a few early adopters, giving the web greater scope as a
brand-building medium rather than simply a direct-response tool.

Michael de Kare-Silver, managing director of AKQA London, believes the
past 12 months have seen a real change in client attitudes. His agency
has handled several large-scale projects in 2005, including the digital
elements of Nike's RunLondon activity and the design of the user
interface on games console Xbox 360. 'It has moved from "Should we
invest?" to "How should we invest?",' he says.

Rise to prominence

As spend has grown, digital agencies have found themselves moving up the
food chain. For many clients, digital is now at the heart of their
strategy, and their digital agencies are no longer a peripheral
concern.

Agency.com cites BA as a company that invites its digital shops to
define the strategic idea. 'Five years ago we were talking to technical
departments,' says managing director David Eastman. 'Now we are talking
to marketing directors 99% of the time.'

It is no surprise, then, that confidence among the sector's agencies is
high. In a new survey by e-consultancy, 96% of agencies describe
themselves as 'very optimistic' or 'quite optimistic' about their
prospects for the next 12 months - a finding borne out by the frequency
of double-digit growth rates in this year's league. The talk is of a
return to the boom years - only this time without a bust around the
corner.

The agency market remains highly fragmented, though the past year has
seen a flurry of mergers and acquisitions among the big players. Late
last year Agency.com merged with itraffic, while 2005 has witnessed
technical specialist LB Icon buy Wheel, Digitas merge with Modem Media,
Goodtechnology absorb Incline, Framfab purchase Oyster and creative
hotshop glue London join Aegis as part of its Isobar network. The upshot
is that there are now a handful of truly big players emerging at the top
end of the market.

The purpose of much of this activity has been to build full-service
credentials. What full service means is not always clear - some see it
as a mix of design/build, marketing and media planning; others argue
that media buying should be included. But the feeling among the bigger
agencies is that they require a broader offering to meet client needs.
This expectation is based partly on experiences in the US, where
behemoth full-service agencies such as Digitas and Avenue A have begun
to dominate. But there is also a financial imperative at play. A lot of
website work is being taken in-house by clients, and there are so many
agencies able to offer the technical expertise needed to build sites
that this area of the digital industry is becoming commoditised,
requiring design/build specialists to diversify. Marketing services
offer a tempting addition to their weaponry.

'Big sites are difficult for an agency to handle,' explains Jon Sharpe,
formerly at itraffic and now managing director of Play, a new joint
venture with M&C Saatchi. 'They are major projects, but once the site is
built there is nothing more to do for two to three years, meaning you
have to take on staff, then lay them off. Marketing revenue, on the
other hand, is more constant.'

As yet there is little evidence to suggest a lot of bigger clients are
looking for full-service agencies. Specialists have had no problem
picking up big accounts this year - marketing shop Dare won the AA
brief, and media agency i-level has gained clients such as BSkyB and
Orange. It is true that Lloyds TSB recently held a pitch to reduce its
digital roster, but Juliet Blackburn, head of digital at the AAR,
insists this remains 'the exception rather than the rule'. For the time
being, the advertisers interested in full-service offerings tend to be
smaller clients for whom digital is not as critical to their
business.

Emerging business models

Nevertheless, several different business models have emerged in
anticipation of a shift to full-service briefs. Agency.com, Modem Media
and Framfab are putting all their operations under one roof to create a
single digital point of contact for clients. Online media buyer Isobar,
meanwhile, is developing a looser confederation of agencies; shops such
as glue and media business Diffiniti will remain independent brands,
each offering a specialist service, yet they will be linked through
Isobar.

Alongside these digital-only models are the specialist arms of marketing
services networks, such as Ogilvy Interactive and Tribal DDB. Their USP
is that they can integrate digital work with offline channels as part of
a broader campaign. Their other major advantage is they have a global
presence, allowing them to take on international business. Ogilvy, for
example, handles American Express everywhere outside the US and recently
won Yahoo!'s global online advertising business.

International briefs are expected to become more commonplace as digital
moves to the heart of client strategy. As a result, standalone agencies
are seeking to catch up. Framfab has developed a footprint across
Europe, while AKQA has opened an office in New York and formed a joint
venture to expand in Asia.

Since major international pitches are still few and far between, it is
fair to say that both the big standalone digital shops and the
integrated networks will be fighting for the same business in the near
future. According to Lawrence Weber, head of digital at LIDA, both sides
still have something to prove. 'The standalone agencies have to convince
clients they have the planning capabilities of the networks, while the
integrated agencies have to convince clients they are technically
excellent,' he says. 'The one that does so first will win.'

Despite the sector's recent growth, there are still challenges facing
all agencies. Perhaps the biggest is finding staff - recruitment was the
challenge mentioned by most agencies in the e-consultancy survey. There
are not enough people in the industry to cope with rising demand, with
skilled account handlers, planners and creatives in short supply. In
part this is a legacy of the bust, when many agencies stopped hiring -
there is a dearth of people with three to four years' experience.

This shortage can present a significant barrier to an agency's
growth.

Seren is a small agency growing rapidly, but struggling to find the
employees to help it continue to expand. 'We have an aggressive
expansion plan over the next few years but we're finding it difficult to
recruit people of a sufficiently high calibre,' says Rishi Dastidar, a
consultant at the firm. 'We want people who are passionate about the
customer experience, not just someone who can knock out a great Flash
visual.'

It is not just small agencies that are suffering. Dare is seeking staff
following its AA win, but is not finding it easy. As a result, it
recently forged a tie-up with Brunel University and Watford College to
take on the best graduates. Indeed, many in the industry feel graduate
recruitment schemes are the long-term answer; in the short term,
however, attracting and retaining good staff will remain an expensive
business.

Client relationships

A further issue is the way in which agencies are employed. At present,
many clients still hire shops on a project basis, with retained
relationships still relatively unusual, despite the increase in budgets.
Goodtechnology is one agency that has succeeded in persuading clients to
offer retainers, having done so with Audi and Canon. Managing director
Xanthe Arvanitakis believes agencies have been too reticent in asking
for more favourable remuneration terms.

'It is unreasonable to expect an agency to provide consistent work and
not give anything back,' she says. 'As an industry we have not had the
confidence to do something about it due to the bust. But now agencies
are in a position to refuse projects if the price isn't right. It is
something we need to do together.'

For Luke Johnston, managing director at Framfab, this is a sign of a
broader problem - that client demands of digital have accelerated faster
than procurement arrangements and budgets. 'Clients are not paying the
right amount of money to meet their expectations. They still think they
can squeeze agencies,' he says. 'We turn down 70%-80% of advertisers
that approach us because we can't do what they want for the money.'

The fact that 20% of media consumption but only 5% of adspend is online
is repeated so often it is almost a cliche. But it is a sign that
digital agencies believe, or at the very least promote the idea that,
there is still plenty of room for improvement.

Perhaps the obvious next step is to convince FMCG advertisers to commit
to the medium. Despite the potential of broadband to turn the web into a
brand-building medium, FMCG firms, the biggest spenders on brand
advertising, have yet to embrace it fully. 'The surprise is there is not
more brand work,' admits Scott Rogers, creative director at Euro RSCG 4D
Digital.

FMCG firms' caution is partly due to a lack of consistent measurement
for online work - there is no digital equivalent of BARB, for example,
and agencies develop their own criteria for monitoring campaigns. The
theory goes that FMCG marketers would be more likely to switch budgets
if there were measurement currencies comparable with offline media -
namely, reach and frequency. Only then will they be swayed by measures
of alternative factors such as interactivity.

Standardised measurement is something the IAB is working toward, but it
admits an agreement is still up to two years away. In the meantime, it
has launched a roadshow to demonstrate to marketers how the web can be
used to build brands.

Efforts such as these will be vital if advertisers are to keep up with
the market's evolution as the digital sector expands into new areas. The
pace of change is relentless - the next couple of years are expected to
see mobile and iTV establish themselves, while search is already
developing into a specialist discipline in its own right. Against this
backdrop of change, agencies are jostling for position, trying to
innovate in anticipation of future needs. Gates and Sorrell will have
plenty to talk about.

Agency Digital Digital Digital % Staff Digital
turnover turnover (%) chg specia-
2004 2003 lists
(pounds) (pounds)
1 Framfab (inc
Oyster Partners) 16,500,000 11,800,000 100 40 185 185
2 AKQA 13,800,000 11,800,000 100 17 170 170
3 dgm 13,412,000 9,064,000 100 48 60 50
Agency Republic* 11,220,673 n/a 100 n/a 62 62
4 Modem Media
(inc Digitas) 10,890,000 4,698,099 99 132 100 80
5 TWI Interactive 9,642,000 7,612,000 100 27 70 70
Agency.com* 9,147,719 n/a 100 n/a 127 127
6 Conchango 8,816,000 7,600,000 76 16 185 148
7 Incepta Online 7,839,308 6,560,000 100 20 105 95
8 Wheel 7,560,000 5,760,000 90 31 87 87
9 3T Productions 7,473,412 5,414,922 100 38 92 30
10 Online
Media Group 6,000,000 2,500,000 100 140 36 34
11 Profero 5,800,000 5,500,000 100 5 55 55
12 DNA 5,600,000 4,100,000 100 37 65 65
13 Carlson Digital 5,500,000 5,400,000 14 2 296 35
14 Syzygy UK 5,400,000 5,200,000 100 4 75 75
15 Interesource
New Media 5,000,000 5,200,000 100 -4 25 25
16 Goodtechnology
Network 4,720,000 n/a 100 n/a 96 89
17 Lightmaker 4,500,000 3,740,000 100 20 48 40
18 Investis 4,335,000 3,211,000 100 35 70 70
19 Dare 4,221,000 2,628,000 100 61 59 56
20 digitalTMW 4,080,250 3,980,000 25 3 180 40
21 Rufus Leonard 3,844,024 3,397,003 70 13 55 30
22 Grand Union 3,780,000 1,890,000 90 100 41 30
23 CMW Interactive 3,512,000 3,337,140 25 5 28 28
24 Freestyle
New Media Group 3,340,933 3,202,467 100 4 43 12
25 Beechwood 3,222,050 3,206,450 65 0 55 21
26 Green Cathedral 3,142,000 1,370,000 100 129 50 50
27 Poulter Group 3,034,000 2,356,000 25 29 118 13
28 Lawton eMarketing 3,000,000 2,500,000 100 20 35 35
29 DC Interact 2,861,781 2,504,879 100 14 45 42
30 glue London 2,797,087 2,099,340 100 33 69 69
31 E3 2,700,000 2,300,000 100 17 35 35
32 Victoria Real 2,642,000 2,048,000 100 29 55 55
33 Reading Room 2,565,148 2,807,006 100 -9 76 76
34 Atticmedia 2,468,593 1,646,005 100 50 32 30
35 Chemistry
Communications 2,464,200 1,395,125 23 77 85 8
36 Harvest Digital 2,442,000 955,000 100 156 16 16
37 Web Diversity 2,400,000 1,400,000 100 71 16 10
38 LIDA 2,316,000 3,353,000 40 -31 55 17
39 DVA 2,189,600 1,948,458 80 12 25 15
40 Lateral Net 2,066,000 1,684,000 100 23 21 21
41 Precedent
Communications 2,060,100 1,813,500 90 14 30 8
42 Equator 2,020,000 879,697 100 130 30 27
43 M-Corp 1,995,000 1,615,000 95 24 28 23
44 Steel 1,984,000 1,280,000 80 55 39 25
45 Graphico
New Media 1,975,022 1,321,143 100 49 39 37
46 Sequence 1,950,000 1,340,000 100 46 35 35
47 Abacus e-Media 1,805,597 1,232,576 100 46 36 21
48 The Big Group 1,700,000 1,300,000 18 31 35 9
49 Pilot Interactive 1,664,171 1,789,610 100 -7 18 17
50 Javelin Group 1,640,000 1,160,000 40 41 38 15
51 Cimex Media 1,636,989 1,207,733 100 36 42 38
52 TechnoPhobia 1,634,396 1,429,121 100 14 40 40
53 Liquorice 1,540,000 1,265,000 55 22 32 8
54 Bostock & Pollitt 1,480,000 1,048,000 40 41 28 8
55 Fortune Cookie 1,350,000 1,000,000 100 35 15 15
56 NetConstruct 1,332,000 1,200,000 100 11 32 20
57 Dialogue DLKW 1,302,400 970,000 40 34 48 18
58 Code
Computer Love 1,301,310 964,280 100 35 29 28
59 Bluhalo 1,240,786 518,004 100 140 28 18
60 Spannerworks 1,207,000 681,000 100 77 25 15
61 Redweb 1,203,601 1,065,416 100 13 21 16
62 Space01 1,200,000 n/a 100 n/a 12 12
63 Start Creative 1,151,000 1,100,000 20 5 55 16
64 Pancentric 1,150,000 918,000 100 25 18 17
65 The
Viral Factory 1,100,000 n/a 100 n/a 8 6
66 Worth Media 1,043,879 1,205,168 100 -13 18 18
67 Poke 1,042,000 895,400 100 16 21 21
68 VCCP Digital 1,020,641 931,097 100 10 15 15
69 Dig For Fire 975,800 597,800 14 63 79 10
70 Mook 922,748 679,128 100 36 13 13
71 Halpern Cowan 917,838 689,748 85 33 21 15
72 Swamp 872,690 459,388 100 90 14 12
73 unit9 Creative
Production 834,000 688,000 100 21 18 18
74 Design UK 830,651 694,803 100 20 17 17
75 Seren Partners 828,000 557,100 90 49 10 8
76 Panlogic 780,620 798,084 100 -2 15 11
77 JJ Group 663,000 448,000 7 48 80 9


Agency
1 Framfab (inc Oyster Partners)
Founded 1996. Subsidiary Framfab AB. MD Luke Taylor. Consultancy
(15%), design/build (25%), e-commerce (25%), CD-Rom (2.5%), mobile
(7.5%), marketing (15%), media planning/buying (10%). Clients
include Sony, Orange, BT. www.framfab.com
2 AKQA
Founded 1995. Subsidiary AKQA Inc. MD Michael De Kare-Silver.
Consultancy (15%), design/build (20%), e-commerce (20%), iTV
(10%), mobile (20%), marketing (10%), media planning/buying (5%).
Clients include Unilever, Nike, Xbox. www.akqa.com
3 dgm
Founded 1999. Publicly quoted. CEO Adrian Moss. Marketing (100%).
Clients include BT, Vodafone, Sainsbury's Bank. www.dgm-uk.com
Agency Republic*
Founded 2001. Subsidiary Omnicom. Chairman Martin Brooks.
Consultancy (10%), design/build (30%), marketing (30%), media
planning/buying (30%). Clients include O2, Blockbuster, BBC.
www.agencyrepublic.com
4 Modem Media (inc Digitas)
Founded 1997. Subsidiary Digitas. MD (Europe) Norm Johnston. No
work breakdown given. Clients include Ericsson, General Motors,
Hewlett-Packard. www.modemmedia.com
5 TWI Interactive
Founded 1997. Subsid. TWI. COO Richard FitzGerald. Consultancy
(15%), design/build (10%), e-commerce (30%), CD-Rom (10%), mobile
(25%), mktg (5%), media planning/buying (5%). Clients include
Vodafone, Manchester United. www.twii.net
Agency.com*
Founded 1995. Subsidiary Omnicom. MD David Eastman. Consultancy
(15%), design/build (15%), e-commerce (15%), CD-Rom (5%), iTV
(5%), marketing (35%), media planning/buying (10%). Clients
include BA, BT, John Lewis. www.agency.com
6 Conchango
Founded 1991. MDs Mike Altendorf, Richard Thwaite. Consultancy
(10%), design/build (10%), e-commerce (50%), CD-Rom (10%), mobile
(20%). Clients include HMV, Virgin Atlantic, Marks & Spencer.
www.conchango.com
7 Incepta Online
Founded 2000. Subsidiary Huntsworth. MD Phil Eames. Consultancy
(20%), design/build (50%), marketing (30%). Clients include Volvo
Ocean Race, NatWest, Waitrose. www.inceptaonline.com
8 Wheel
Founded 1987. Subsidiary LB Icon. CEO Philip Hunt. Design/build
(28%), e-commerce (20%), iTV (2%), mobile (5%), marketing (30%),
media planning/buying (15%). Clients include Marks & Spencer, BT,
National Savings. www.wheel.co.uk
9 3T Productions
Founded 1982. Subsidiary RM. MD Sheila Rogers. Design/build (60%),
CD-Rom (40%). Clients include Department of Education & Skills,
Qualifications & Curriculum Authority, Cambridge Hitachi.
www.3t.co.uk
10 Online Media Group
Founded 2001. Privately owned. CEO Richard Syme. Consultancy (5%),
marketing (85%), other (10%). Clients include MBNA, Alliance &
Leicester, Norwich Union. www.onlinemediagroup.co.uk
11 Profero
Founded 1998. Privately owned. MD Wayne Arnold. Consultancy (5%),
design/build (10%), iTV (5%), mobile (10%), marketing (35%), media
planning/buying (35%). Clients include Black & Decker, Channel 4,
COI. www.profero.com
12 DNA
Founded 1995. Privately owned. MDs Neil Miller, Chris Perry.
Consultancy (10%), design/build (10%), e-commerce (25%), CD-Rom
(5%), mobile (10%), mktg (20%), media planning/buying (10%), other
(10%). Clients include O2, BMW. www.dna.co.uk
13 Carlson Digital
Founded 1990. Privately owned. President EMEA Jose Ferrao.
Consultancy (20%), design/build (40%), e-commerce (10%), mobile
(5%), marketing (20%), media planning/buying (5%). Clients include
Hyundai, Muller, Arla Foods. www.carlsondigital.com
14 Syzygy UK
Founded 1995. Subsidiary Syzygy AG. MD Gareth Phillips.
Consultancy (15%), design/build (40%), e-commerce (10%), marketing
(35%). Clients include Mazda, AirMiles Travel Company, Mercedes-
Benz. www.syzygy.net
15 Interesource New Media
Founded 1995. Privately owned. Managing partners Ian Howlett, Will
Howells. Consultancy (20%), design/build (15%), e-commerce (50%),
mobile (10%), marketing (5%). Clients include Lawn Tennis
Association, Lloyds of London. www.interesource.com
16 Goodtechnology Network
Founded 1994. Subsidiary WPP. MD Xanthe Arvanitakis. Design/build
(20%), e-commerce (30%), iTV (2.5%), mobile (2.5%), marketing
(45%). Clients include Audi, BA, Canon. www.goodtechnology.com
17 Lightmaker
Founded 1996. Privately owned. CEO Rob Noble. Consultancy (10%),
design/build (60%), e-commerce (15%), CD-Rom (5%), mobile (5%),
marketing (5%). Clients include Electronic Arts, JCB World Brands,
National Blood Service. www.lightmaker.com
18 Investis
Founded 2000. Privately owned. Chairman Justin Walters.
Design/build (82%), other (18%). Clients include Prudential, ITV,
Virgin Mobile. www.investis.com
19 Dare
Founded 2000. Privately owned. Managing partner Mark Collier.
Consultancy (20%), design/build (30%), CD-Rom (2%), mobile (5%),
marketing (43%). Clients include Barclays, AA, Sony Ericsson.
www.daredigital.com
20 digitalTMW
Founded 1987. Privately owned. Director Ross Taylor. Consultancy
(10%), design/build (40%), e-commerce (5%), CD-Rom (10%),
marketing (35%). Clients include Nissan, Diageo, British Airways.
www.tmw.co.uk
21 Rufus Leonard
Founded 1989. Privately owned. CEO Neil Svensen. Consultancy
(20%), design/build (30%), e-commerce (20%), iTV (5%), mobile
(5%), marketing (20%). Clients include BT, QinetiQ, Shell.
www.rufusleonard.com
22 Grand Union
Founded 2000. Privately owned. Managing partners Rob Forshaw, Matt
Nicholls. Consultancy (20%), design/build (15%), e-commerce (15%),
iTV (5%), mobile (5%), marketing (40%). Clients include Abbey,
Britvic, Nestle. www.thegrandunion.com
23 CMW Interactive
Founded 1999. Subsidiary Media Square. Chairman Jonathon Clark.
Consultancy (11%), e-commerce (40%), CD-Rom (5%), iTV (2%), mobile
(2%), marketing (40%). Clients include Flybe, Renault, Transport
for London. www.cmw-uk.com
24 Freestyle New Media Group
Founded 1996. Privately owned. Managing partner Suzanne Linton.
Consultancy (15%), design/build (40%), e-commerce (10%), CD-Rom
(23%), mobile (2%), marketing (10%). Clients include Land Rover,
IMI, Simple. www.fsnm.co.uk
25 Beechwood
Founded 1999. Privately owned. Chairman Philip Beeching.
Consultancy (10%), design/build (50%), e-commerce (10%), CD-Rom
(2%), mktg (20%), media planning/buying (8%). Clients incl HMV,
Pernod Ricard, Chivas Brothers. www.beechwood.com
26 Green Cathedral
Founded 1996. Privately owned. CEO Dr Michael Woodley. Consultancy
(15%), design/build (27%), mktg (14%), media planning/buying
(44%). Clients include DTI Small Business Service, Open
University, PC World. www.greencathedral.com
27 Poulter Group
Founded 1969. Privately owned. MD Gary McCall. Consultancy (10%),
design/build (50%), CD-Rom (20%), mobile (5%), marketing (15%).
Clients include Spirit, William Hill, Britvic.
www.poultergroup.com
28 Lawton eMarketing
Founded 1995. Subsid. Lawton Communications. Creative director Tim
John. Consultancy (15%), design/build (15%), e-com (5%), CD-Rom
(2%), mob (7%), mktg (31%), media plan/buy (25%). Clients include
Adidas, IBM. www.lawtonemarketing.co.uk
29 DC Interact
Founded 1998. Privately owned. Chairman Rupert Valpy. Consultancy
(20%), design/build (35%), e-commerce (10%), mktg (15%), media
plan/buy (5%), other (15%). Clients include Apple, William Grant &
Sons, Unilever. www.dcinteract.com
30 glue London
Founded 1999. Subsidiary Aegis. MD Mark Cridge. Design/build
(10%), iTV (2%), mobile (3%), marketing (70%), other (15%).
Clients include T-Mobile, Sky, Virgin Trains. www.gluelondon.com
31 E3
Founded 1997. Subsid. E3 Holdings. MDs Stuart Avery, Mike Bennett.
Consultancy (5%), design/build (30%), e-com (25%), CD-Rom (5%),
mobile (10%), mktg (15%), media plan/buy (10%). Clients incl Kia,
Toni & Guy, BBC. www.e3media.co.uk
32 Victoria Real
Founded 1990. Subsid. Endemol. Chairman Peter Cowley. Consultancy
(15%), design/build (40%), e-commerce (15%), iTV (10%), mobile
(10%), mktg (5%), other (5%). Clients incl Channel 4, Ladbrokes,
Scottish Parliament. www.victoriareal.com
33 Reading Room
Founded 1996. Privately owned. MDs Margaret Manning, Simon Usher.
Consultancy (20%), design/build (30%), e-commerce (20%), CD-Rom
(5%), mobile (5%), mktg (20%). Clients incl Sony, Unesco, Cancer
Research UK. www.readingroom.com
34 Atticmedia
Founded 1996. Privately owned. Chairman Mark Weber. Consultancy
(10%), design/build (20%), CD-Rom (10%), iTV (2%), mobile (3%),
marketing (10%), other (45%). Clients include BBC,
PricewaterhouseCoopers. www.atticmedia.com
35 Chemistry Communications
Founded 2000. Publicly quoted. MD Diane Charlton. Consultancy
(15%), design/build (35%), mobile (5%), marketing (45%). Clients
include Unilever, Transport for London, Kodak.
www.chemistrygroup.com
36 Harvest Digital
Founded 2001. Privately owned. Managing partner William Corke.
Consultancy (5%), e-commerce (5%), mobile (5%), marketing (25%),
media planning/buying (60%). Clients include Norwich Union, Thomas
Cook, Shelter. www.harvestdigital.com
37 Web Diversity
Founded 2000. Privately owned. CEO Jim Banks. Consultancy (5%),
marketing (95%). Clients include Visit London, Best Deal
Insurance, Isabella Oliver. www.webdiversity.co.uk
38 LIDA
Founded 2000. Subsidiary M&C Saatchi. Chairman Moray MacLennan.
Consultancy (15%), design/build (35%), e-commerce (20%), mobile
(5%), marketing (25%). Clients include Mini, KPMG, COI.
www.lida.com
39 DVA
Founded 1987. Privately owned. Chairman David Stewart. Consultancy
(15%), design/build (10%), e-commerce (5%), CD-Rom (60%), other
(10%). Clients include Winterthur, NRG, Adidas. www.dva.co.uk
40 Lateral Net
Founded 1997. Privately owned. MD John Bains. Consultancy (15%),
design/build (40%), e-commerce (10%), mobile (5%), marketing
(30%). Clients include Levi Europe, Channel 5, Nintendo.
www.lateral.net
41 Precedent Communications
Founded 1989. Privately owned. MD Paul Hoskins. Consultancy (30%),
design/build (55%), e-commerce (15%). Clients include City &
Guilds, Middlesex University, IDA. www.precedent.co.uk
42 Equator
Founded 1999. Privately owned. MD John McLeish. Consultancy (5%),
e-commerce (50%), CD-Rom (5%), mobile (30%), media planning/buying
(10%). Clients include Haven, NTL, Budget Rent A Car. www.eqtr.com
43 M-Corp
Founded 1998. Privately owned. MD Awni Samara. Consultancy (6%),
design/build (49%), e-commerce (9%), CD-Rom (30%), marketing (5%),
other (1%). Clients include RNLI, Liverpool Victoria, Motorola.
www.m-corp.com
44 Steel
Founded 1980. Privately owned. Managing partners Andy Hinder, Les
Hughes, Rob Dinsdale, Stuart Pearson. Consultancy (4%),
design/build (20%), e-com (10%), CD-Rom (3%), iTV (3%), mktg
(60%). Clients incl AOL, FT.com. www.steel-london.co.uk
45 Graphico New Media
Founded 1990. Privately owned. Managing partner Mark Bennett.
Consultancy (10%), design/build (50%), e-commerce (5%), CD-Rom
(10%), mobile (10%), marketing (15%). Clients include Pepsi, BBC,
Universal Music. www.graphico.co.uk
46 Sequence
Founded 1995. Privately owned. MD Richard Baker. Consultancy
(10%), design/build (40%), e-commerce (30%), CD-Rom (5%), mobile
(3%), marketing (5%), other (7%). Clients include Storm Models,
Cardiff University. www.sequence.co.uk
47 Abacus e-Media
Founded 1977. Subsidiary Gowi Group. MD Steve Feigen. Consultancy
(6%), design/build (2%), e-commerce (70%), mobile (1%), mktg (2%),
other (19%). Clients incl CMPi, Thomson Financial, Lincolnshire
County Council. www.abacusemedia.com
48 The Big Group
Founded 1991. Privately owned. Chairman Robert Michaelson.
Design/build (55%), e-commerce (17%), CD-Rom (10%), mktg (5%),
media planning/buying (3%), other (10%). Clients include
MasterCard, Cadbury Schweppes. www.biggroup.co.uk
49 Pilot Interactive
Founded 1996. Subsid Advertising Principles. Mnging partners Chris
Goodwin, Bernie May. Consult (10%), design/build (40%), CD-Rom
(5%), mktg (5%), media plan/buy (25%), other (15%). Clients incl
Disney, Halfords. www.pilotinteractive.co.uk
50 Javelin Group
Founded 1998. Privately owned. MD Tony Stockil. Consultancy (50%),
e-commerce (30%), iTV (20%). Clients include B&Q, Comet, Sit Up
TV. www.javelingroup.com
51 Cimex Media
Founded 1994. Privately owned. MD Steve Puxley. Consultancy (5%),
design/build (30%), CD-Rom (30%), mobile (5%), marketing (5%),
other (25%). Clients include BBC, Department for Education &
Skills, e-skills. www.cimex.com
52 TechnoPhobia
Founded 1995. Privately owned. MDs Pip Thorne, Amelia Thorne.
Consultancy (10%), design/build (20%), e-commerce (45%), mobile
(1%), mktg (1%), media plan/buy (9%), other (14%). Clients incl
Becta, Green Flag. www.technophobia.com
53 Liquorice
Founded 1998. Privately owned. CEO Quentin Boyes. Consultancy
(8%), design/build (30%), e-commerce (20%), CD-Rom (2%), mktg
(20%), media plan/buy (10%), other (10%). Clients incl Hoverspeed,
McNeil, Letts Education. www.liquorice.net
54 Bostock & Pollitt
Founded 1987. Privately owned. Chairman David Chapple. Consultancy
(20%), design/build (30%), e-commerce (15%), CD-Rom (10%), mobile
(5%), marketing (20%). Clients include Smiths Group, BT,
GlaxoSmithKline. www.bostockandpollitt.com
55 Fortune Cookie
Founded 1997. Privately owned. MD Justin Cooke. Consultancy (20%),
design/build (35%), e-commerce (45%). Clients include Legal &
General, London Borough of Lambeth, Kuoni Travel. www.fortune-
cookie.com
56 NetConstruct
Founded 1995. Privately owned. MD David Bentley. Consult (15%),
design/build (30%), e-commerce (35%), mktg (5%), other (15%).
Clients incl Cadbury, British Glass Manufacturers Confederation,
Greater London Authority. www.netconstruct.co.uk
57 Dialogue DLKW
Founded 2002. Subsidiary DLKW & Partners. CEO Paul Biggins.
Consultancy (10%), design/build (35%), iTV (5%), marketing (50%).
Clients include Halifax, COI, Burger King. www.dialoguedlkw.com
58 Code Computer Love
Founded 1999. Privately owned. Managing partners Tony Foggett,
Louis Georgiou, Wini Tse. Consult (10%), design/build (35%), e-com
(15%), CD-Rom (10%), mktg (25%), other (5%). Clients incl Kimberly
Clark, Capital One. www.computerlove.co.uk
59 Bluhalo
Founded 1999. Privately owned. MD Spencer Gallagher. Consultancy
(5%), design/build (25%), e-commerce (50%), CD-Rom (5%), mobile
(5%), mktg (10%). Clients incl Tottenham Hotspur FC, AirMiles
Travel Company, Samsung. www.bluhalo.com
60 Spannerworks
Founded 1997. Privately owned. MD Arjo Ghosh. Marketing (81%),
media planning/buying (19%). Clients include BMI, HBOS, Virgin.
www.spannerworks.com
61 Redweb
Founded 1997. Privately owned. MD Andrew Henning. Consultancy
(4%), design/build (56%), e-commerce (23%), marketing (4%), other
(13%). Clients include UK Passport Service, Harcourt Education,
Amicus. www.redweb.co.uk
62 Space01
Founded 2004. Privately owned. MD Paul Brooks. Consultancy (30%),
design/build (15%), e-commerce (50%), marketing (5%). Clients
include Friends Provident, Clerical Medical, BUPA.
www.space01.co.uk
63 Start Creative
Founded 1996. Subsidiary Start. Chairman Mike Curtis. Design/build
(40%), CD-Rom (10%), iTV (10%), mobile (10%), marketing (30%).
Clients include Virgin, Royal Mail, BBC. www.startcreative.co.uk
64 Pancentric
Founded 2003. Privately owned. MDs Bruce Stewart, James Downes.
Consultancy (20%), design/build (25%), e-commerce (20%), marketing
(30%), other (5%). Clients include Gillette, Merck Sharp & Dohme,
Whitbread. www.pancentric.com
65 The Viral Factory
Founded 2001. Privately owned. Co-founders Ed Robinson, Matt
Smith. Consultancy (5%), mobile (5%), marketing (70%), media
planning/buying (20%). Clients include Microsoft, Vodafone,
Trojan. www.theviralfactory.com
66 Worth Media
Founded 1996. Privately owned. Chairman John Worth. Consultancy
(10%), design/build (50%), e-commerce (20%), CD-Rom (10%),
marketing (10%). Clients include Lucozade Sport, Aquafresh, NHS.
www.worthmedia.net
67 Poke
Founded 2001. Privately owned. MD Nick Farnhill. Consultancy
(20%), design/build (50%), marketing (30%). Clients include
Orange, Yahoo!, BBC Worldwide. www.pokelondon.com
68 VCCP Digital
Founded 1999. Subsidiary Chime Communications. MD Tom Hopkins.
Consultancy (20%), design/build (40%), iTV (35%), marketing (5%).
Clients include Somerfield, MSN, Coca-Cola. www.vccp.com
69 Dig For Fire
Founded 1983. Privately owned. Chairman Charles Buddery.
Consultancy (10%), design/build (60%), e-commerce (5%), CD-Rom
(10%), marketing (15%). Clients include AXA PPP Healthcare, Tesco,
First Direct. www.digforfire.co.uk
70 Mook
Founded 1999. Privately owned. MD Tom Adams. Consultancy (5%),
design/build (30%), CD-Rom (10%), mobile (5%), marketing (50%).
Clients include Sport England, MTV, Sony PlayStation.
www.mook.co.uk
71 Halpern Cowan
Founded 1999. Privately owned. Chairman David Halpern. Consultancy
(15%), design/build (25%), e-commerce (10%), marketing (45%),
media planning/buying (5%). Clients include ebookers.com,
Malmaison, Urbium. www.halperncowan.com
72 Swamp
Founded 2002. Privately owned. Chairman Simon Wadsworth.
Consultancy (20%), design/build (40%), e-commerce (5%), mobile
(5%), marketing (10%), media planning/buying (20%). Clients
include Heinz, Umbro, Sharp. www.swamp.co.uk
73 unit9 Creative Production
Founded 1996. Privately owned. MD Mark Iremonger. Design/build
(90%), CD-Rom (10%). Clients include Vodafone, Goodby Silverstein
& Partners, Dentsu. www.unit9.com
74 Design UK
Founded 1998. Privately owned. Managing partner Scott Wilkinson.
Consultancy (15%), design/build (25%), e-commerce (40%), CD-Rom
(5%), marketing (15%). Clients include Butlins, Diesel, Hackett.
www.designuk.com
75 Seren Partners
Founded 2003. Privately owned. Chairman Terry Heath. Consultancy
(35%), design/build (5%), e-commerce (20%), mobile (40%). Clients
include Vodafone, Dixons Group, UBS. www.seren.uk.com
76 Panlogic
Founded 1999. Privately owned. Chairman William Makower.
Consultancy (30%), design/build (25%), e-commerce (10%), mobile
(5%), marketing (30%). Clients include L'Oreal, BBC, British Heart
Foundation. www.panlogic.co.uk
77 JJ Group
Founded 1989. Privately owned. Chairman James Goddard. Consultancy
(10%), design/build (35%), e-commerce (5%), CD-Rom (15%), mktg
(25%), media planning/buying (10%). Clients include British Gas,
Aston Martin. www.thejjgroup.com

*Companies House financial data provided by Willott Kingston Smith on
agencies affected by the Sarbanes-Oxley Act

THE SARBANES-OXLEY EFFECT

For digital agencies affected by the US Sarbanes-Oxley Act we have used
Companies House data provided by Willott Kingston Smith. These figures
may be inflated by re-billable costs such as media billings. No digital
revenue data could be found for the following agencies: MRM Partners,
Euro RSCG 4D Digital, Tribal DDB, Ogilvy Interactive, Draft Worldwide,
Haygarth, Wunderman Interactive, Proximity London, Arc London and Joshua
Interactive.

MEDIA NETWORK SUBSIDIARIES

Most major media network agencies in the UK have digital subsidiaries
but, due to the restrictions of the US Sarbanes-Oxley Act, are unable to
provide financial information. Normally, Marketing would use data from
Companies House for those agencies, but in the case of these networks it
has been impossible to separate digital turnover from overall turnover,
making it unfeasible to enter them in the main league.