Not long ago, the idea of Bill Gates and Sir Martin Sorrell sharing a platform to discuss the finer points of online marketing would have seemed fanciful. Yet this week the respective heads of Microsoft and WPP do exactly that, delivering keynote speeches to the Internet Advertising 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 拢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 拢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.