It wasn’t until 2006 that Digitaria took off as a full-service agency, Khabie said.

Khabie continued that Digitaria’s differentiator is that in addition to the full-service agency work, they help clients create products — digital products and physical products.

“We actually helped a client design a new dashboard,” Khabie said. “In addition, we have a fully-integrated CRM (customer relationship management) component with data analytics helping our customers transform new ways to market — we look at marketing through a digital lens.”

Khabie commented that the advertising market constantly goes in cycles and believes that more businesses will embrace digital to differentiate themselves in a truly innovative way.

“Just like Netscape was to the browser,” Khabie said. “Facebook will be to the future of marketing as more and more interesting points of connectivity and engagement emerge.”

MiresBall, also new to the list at No. 4, reports a 15 percent increase in local revenue from 2010 to 2011. MiresBall is not new to the San Diego advertising agency community, however.

“In spite of the recession, we have continued to grow,” said Jonathan Forstot, director of marketing. “We increased our staffing by 20 percent this last year and we’re still looking to add staff.”

Forstot added that the agency moved just over a year ago to space that is double the previous space to a building on State Street downtown that was home to a former coffin company that they “redesigned into an open, creative work environment filled with light and art.”

Scott Mires and John Ball founded Mires Design in 1984 and in 2006 rebranded the company to MiresBall and Forstot commented that “the best part of our agency is that the creative talents of both men touch everything that comes into the agency.”

Forstot continued that a strength of MiresBall is that they are not limited to advertising, they start at the beginning to develop a strategy, conduct extensive research encompassing all aspects of the project, and, most importantly, make sure that the recommendation is something the company can execute.