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It has been a great year, overall, for interactive. More clients spent more money than ever in the medium, and ads migrated to sub-genres of interactive: iTV, mobile and podcasting are just a few of the new places to find the work created by the 18 agencies we have graded here. Here's how we determine the grades. Numbers: We gathered information on revenue and staff from a number of sources: industry experts, syndicated data, published reports and other sources. We evaluate the agencies on revenue-to-staff ratio and revenue gains as compared with interactive-industry averages (this year's aggregate average was about 27 percent) before determining a composite rank in both categories. Then, with the help of Adweek financial columnist Alan Gottesman, grades were determined for all 18 agencies. We also consider the revenue base for each agency in determining the grade. If a shop has a large percentage increase in revenue, but is starting from a small base, its grade may not be as high as a larger agency with a smaller percentage increase. Wins and losses in this category are for retainer-based clients, unless otherwise noted. Creative: Grades are based on design, ease of navigation, user experience and the overall power of the marketing idea. They take into account more than the work described in each shop's creative section; space limitations prevent us from going into greater detail. Technology: Creating proprietary technologies garners high grades, though shops that find innovative ways to use existing technologies get credit, too. The bar has been raised exponentially over the past few years on this expertise; so have our expectations. Management: How executives run their businesses, taking into account revenue growth versus competitors, management moves to and from the company, and other initiatives. The final grade: We use a numeric formula to average the other four marks.

Revenue up 35% to $95 million. Wins: Audible.com, Long & Foster, Maidenform. Expanded work for British Airways, Miller Brewing and eBay.

Innovative use of media is a forte. Campaign for British Airways deftly uses Web, wireless and outdoor to engage target with definitions of "Britishisms." Desktop app for Discovery let people grow a virtual butterfly--and gave Discovery persistent branding on valuable computer real estate.

Used XML to showcase CNN.com's free video by feeding breaking real-time news headlines into ad units. Created customized site-creation tool for Chevron to ensure Web presence consistency and usability for company's far-flung operations. Full-production e-mail and search optimization practices.

CEO Don Scales continued shop's solid financial performance in 2005. Alignment plan set in May to pair Agency.com with TBWA network progressed in fits and starts.

Scales left in February, after clashing with Omnicom over alignment strategy. New CEO David Eastman (former managing partner at Agency.com, London) is banking on plan to bring shop into new markets, like the Brussels outpost opened in March, while keeping its indie cred.

Revenue rose 37% to $190 million. Wins: Capital One, Bath & Body Works and Wyeth. Losses: MSN media.

Ford redesign balances style and usability. Sleek Mercedes AMG site takes aficionados on nostalgic virtual tour of Affalterbach factory. Best Buy faux site for "Pump Up the Movie" plays into viral trend, though interactive cheerleader features fall flat. Levi's rich media banners use a small area to show complex message, expanding to match different personalities with jean styles.

Shop's analytics focus pays dividends in melding of tech and media. HomePages.com for HouseValues lays out real estate info in mash-up of satellite maps, multiple data sources. Beefed-up search optimization capability now used by several clients.

Clark Kokich, president of West region, named worldwide president in September. Strong results from Web design business proved 2004 Razorfish buy prescient. Kokich started international push with purchase of London's DNA in December.

Agency, a division of aQuantive, has established itself in all interactive aspects--site design, media, strategy, search, analytics. February's Coors integrated win is endorsement, but should guard against becoming jack-of-all-trades, master of none.

Revenue up 46% to $155 million. Expanded GM by adding Buick to GMC, Pontiac and Saab. Kept Ameriprise account following spin-off from American Express. Wins: IBM global Web communications, Cingular media, AARP, InterContinental's Hotel Indigo. No losses.

American Express work goes beyond branding to product creation with IN:NYC card. "Active branding" approach emphasizes product sampling. Deep relationship with Yahoo! pays off with AmEx Broadway push that melds promotion, branding and response to show card benefits. Reintroduced Pfizer's Viagra to TV with "Make the Call" push that focuses on education site and is supported by mass media.

Direct heritage a bonus, building measurable results as traditional ad dollars migrate online. Solidified enterprise data role with GM across four brands. AmEx MyWish list integrated backend data to create dynamic banner ads.

President Laura Lang's top team kept up 2004 momentum at the agency, a unit of holding company Digitas, Inc. Bolstered creative talent with ecd George Tannenbaum from Publicis & Hal Riney, and Graham Mills and Jack Nolan via Arc.

Woes at top client GM--22 % of 2005 revenue--could actually help, as carmaker shifts marketing budget share to less expensive, more accountable media.

Revenue up 55% to $85 million. Wins: Motorola, Hampton Inn, Hewlett-Packard-owned Snapfish and Unibanco in Latin America. Expanded Kraft relationship with Milk-Bone and Seattle's Best Coffee assignments. Losses: The New York Times. Fourth-largest revenue increase, but came off fifth-smallest base.

Motorola virtual pond uses trendy consumer-generated content, letting users etch on digital pebbles. ONDCP "Above the Influence" sites sometimes try too hard for audience engagement. "Don't be a Ralph" Subservient Chicken rip-off feels stale. "Faces" ad unit does a better job at communicating anti-peer pressure message. HP ads visually appealing. Diet Coke's "Slice of Life" gives real-time wire headlines in banner.

Developed and launched an iTV credit card for Sky TV in the UK as part of a loyalty program. Technology developed for set-top boxes let customers redeem points directly for programming and services.

Pam Larrick joined as CEO in January from IPG sister shop MRM. Motorola win in May showed shop can attract big-name non-FCB clients. To spur expansion, brought in Michael Emerson to serve as chief development officer in May.

Close integration with FCB should make cross-media integration easier, but agency is building credibility as digital specialist in its own right.

Revenue up 2% to $280 million. Small revenue gain off of largest base. Wins: Computer Associates, Jaguar (agency did not distinguish between project/retainer). Losses: Most of Intel, Verizon. Strong revenue/employee ratio lifts grade.

Jaguar's "Prefer Gorgeous" visually arresting, useful. Reckitt Benckiser's Rodasol featuring Mona Lisa beset by mosquitos is amusing. Stellar navigation on comparison feature for Sony Australia handicam site.

Digital Land, an elaborate, participatory virtual city for Intel in Brazil, shows how shop uses technology to engage consumers. Work for Lexmark International, including company's customer database, back-end reporting systems, shows b-to-b prowess.

Shop eked out small revenue gain despite Intel loss. Regional managers gained responsibility after 4D CEO George Gallate was named to also head Euro's Asian operations in June; Sergio Caruso and Gavin Coombes were promoted to regional directors of Latin America and Asia-Pacific, respectively. Alex Bombeck promoted to president, N.A. digital operations, in July from chief strategy officer, New York.

Appointment of Arnaud de Baynast to regional director Europe in January rounds out exec team. If ups and downs of parent Paris-based Havas don't intrude, 4D should be well-positioned. March 2006 win of global b-to-b work for Orange is good start.

Revenue up 14% to $250 million for WPP-owned Grey Digital, which includes Grey Interactive, Grey Direct and Beyond Interactive. GI Wins: CIBA Vision, Allergan Botox, Manpower. Losses: Harrisdirect. Beyond wins: H&M, Shell, Western Union. Losses: Cheaptickets.com.

GI's Masterfoods work leans on dull infotainment: Star Wars-themed M&M's "Chocolate M-Pire" and lighthearted lab backstory for Mega M&M's. Beyond's Western Union ads take understandably straightforward tack to show wire transfer benefits. Similar approach for 3M, Dow Corning, Aleve.

GI developed online voting app for Procter & Gamble's CoverGirl Miss Universe pageant tie-in, In Europe, text-messaging/Web cap-code rewards program for Coke. Beyond executed mobile or gaming campaigns for Audi, Warner Bros. and Remington.

So-so year in booming market for Grey Interactive managing director Norman Lehoullier. Nick Pahade, Beyond's founder, left in December. Growth below industry average after two solid years.

Like parent agency, Grey Digital depends on longtime clients for organic growth, which made loss of P&G roster status especially tough pill to swallow. Will continue work, but will not be considered for new assignments.

Revenue up 49% to $193 million based on restated numbers to include acquisitions. Wins: Revlon, Motorola, Liberty Mutual. Losses: Western Union, PeopleSoft, Citibank. (Did not distinguish between project/retainer.) Poor revenue/employee ratio brings grade down.

Work notable for media use but not for great design. Creative for the new Adidas_1 employed range of digital media--from a themed version of MSN Messenger to a desktop video player with a "skin" like the shoe. Molecular Web site for caretalk.com workman-like.

Site-builder Molecular adds tech capabilities to Isobar's arsenal. For Analog Devices, Molecular users build custom amplifiers to test before buying. Freestyle Interactive was one of first to use MSN Messenger's customized skins in support of the Adidas_1.

High-level defections at several Isobar units marred strong year. Departures included Freestyle president Karim Sanjabi and Ron Belanger, who headed Carat's search capabilities, in August; Toby Gabriner, president of Carat Fusion, in November. CEO Nigel Morris continued acquisitions, such as Stockholm agency Farfar, domestic shop Molecular. Goal of Aegis Group unit is to have presence in top 40 markets.

Acquisition spree continues with February 2006 purchase of Ammo Marketing. Hire of Scott Sorokin from MRM Worldwide earlier this month to fill Gabriner's role fills key Carat Fusion post.

Revenue grew 19% to $89 million, aided by expansion of search services at this Digitas Inc. shop. Wins: BBC, Revlon. No losses. Expanded work for Delta Air Lines.

Revlon's Vital Radiance launch full of pretty pictures, but nothing unusual for the category. Trolli Web site combines edgy video, cool graphics. Community application for leaders of Microsoft user groups utilizes bee-and-hive imagery, but perhaps too cute for its audience. Relaunch of Delta site let airline segment customers and offers. Embrel site for arthritis sufferers empathetic, focusing on patients' experience; introduced drug with Webcasts, radio and banners.

Self-refreshing ads for Kraft get most play as they can out of expensive MSN placements. Screensaver used by HP sales to recall product features was so successful, it has been released to consumers.

In January 2005, Digitas San Francisco was folded into Modem San Francisco. The entire agency is now led by president Martin Reidy, former president of Digitas West. Reidy raised Modem's visibility, and CRM expert Brian Powley joined in December 2005 to direct Modem Media West and expand CRM services. Dani Nadel joined from Digitas as rainmaker.

Integration of Digitas direct response should provide more growth opportunities in 2006.

Revenue up 11% to $70 million. Wins: Vonage (U.S. and U.K.), Dell (Singapore), Coca-Cola (Argentina) and Bayer (U.K. and Mexico). Losses: Intel and Volkswagen.

U.S. work is stronger in media, partnering with Havas sister agencies Euro and Arnold for creative. Work tends to be simple and insistent. Site takeover for Volkswagen gets attention without overwhelming content; when a Peugeot 206 keeps bumping against the edge of its display ad box, users are compelled to click on it.

Good at aggregating data across media using Artemis, a proprietary campaign tracking and analysis app, which integrates data from interactive, TV, direct mail to provide integrated reports on ROI.

In January 2005, MPG folded its MPG Direct division into Media Contacts. Instead of shuffling personnel, CEO Don Epperson created a "borderless C-level executive suite," providing on-the-spot executive coverage in North America and Europe to allow unified servicing of global clients. Bought French search shop Iando in September.

Heavy reliance on sister agencies for creative, with Media Contacts leading in data-crunching. Search is a growing part of the practice, thanks to Iando acquisition, providing planning, buying and optimization. Agency's focus does not seem to be on the U.S. market.

Revenue up 37% to $160 million. Wins: Intel (with McCann WorldGroup), U.S. Army (with McCann Erickson). Losses: Avaya, Hallmark.

MasterCard "Win a House" holiday work playful. Engaging Nikon camera banners invite users to play by letting them take a picture of one part of a banner ad and then introducing them to specs about Coolpix digital cameras. Wendy's Spicy Chicken "Burn" creative, which burns a hole in the Web site, is run-of-the-mill. "Stationery Is Bad" viral work for Microsoft Office OneNote is amusing, but seems like a TV campaign.

Technology hits include managing customer database for Dell, developing customer-profiling technologies for Microsoft. Shop using worldwide footprint to share knowledge about different digital technologies as they develop throughout the world.

With one full year under his belt, CEO Reuben Hendell focuses on making IPG's MRM a true global interactive player. In 2005, agency brought together McCann Relationship Marketing, Zentropy Partners and data and analytics company Miller Starr to form MRM Worldwide. Strategy pays off with integrated wins.

As digital media goes mainstream, McCann needs an interactive capability to give it the same heft in online media as it has offline. Moves over last 18 months to strengthen MRM may make that a reality.

Revenue up 33% to $61 million. Wins: Home Depot (Canada), Louis Vuitton, AutoTrader.com, Gore-Tex. Good growth percentage, but off of smallest revenue base.

Louis Vuitton site deftly melds luxury messaging with e-commerce. Habbo Hotel virtual world "L'Oréal Lounge" integration engages youth target. Created workmanlike Web ads: effort for AutoTrader.com brings rich site features to expandable banner; rich media livens up Home Depot Canada customer e-mail.

Nurun's Web development and IT expertise gives advantage of linking back-end systems with Web ad efforts. Struck partnership with Georgia Tech for futuristic mobile marketing apps.

Following acquisition of Ant Farm Interactive by Montreal-based Nurun in July 2004, 2005 was a year of integration of Web development and online advertising firms. Ant Farm founders Michael Koziol and Melissa Honabach settled into evp roles under agency CEO Jacques-Hervé, a former Y&R exec in France.

Owned by Canadian print company Quebecor, Nurun|Ant Farm is starting to pitch against larger, more prominent shops. Its international profile will help, with deep roots in Europe, North America and Asia following January purchase of China Interactive. Roubert looking for more acquisitions, possibly in CRM and search.