The group, whose clients include Procter & Gamble, Alliance & Leicester and HSBC, has been badly affected by the economic downturn of the past 18 months, and has had to adjust its business accordingly.
The buoyant growth DMG enjoyed for the first two years following its inception in 2006 slowed to an 18% lift in 2008, and a pre-tax profit of £3.1m, but today the group reports its first annual loss.
Group revenues for the year dropped by 27% to £48.5m, primarily as a result of sales of data analytics data to financial clients drying up. DMG's net debt increased from £5.9m in 2008 to £7.3m.
Losses have been partially offset by a series of cost cutting measures and growth in technology-related e-commerce business for the likes of JD Sports and Waitrose.
Ben Langdon, chief executive of DMG, admitted the last year had been "a tough time to do business", but said today's results were "robust" in the circumstances.
He highlighted EBITDA of £8.3m, "despite having faced the challenge of a global recession", and that eCommerce has grown more than 50% to £1.57m before tax.
During 2009, DMG shed approximately 10% of its work force, which now stands around 530. It has also acquired the digital and mobile creative business 20:20 London and consolidated its nine separate business units into 20:20 and DMG.
Looking ahead, DMG plans to develop its emphasis on eCommerce and technology and to consolidate the business into one fully integrated operating unit.
Langdon said: "Our combination of technology, marketing and data skills means that we're incredibly well placed to take advantage of the upturn in consumer marketing spend."
A broker for DMG said a "modest improvement" is expected for the remainder of 2010, with a return to growth in 2011.
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