• by Joe Mandese  @mp_joemandese, December 20, 2007

The integration earlier this year of Carat's traditional and interactive media operations into one consolidated media services organization appears to be paying off as the year draws to a close - at least on the interactive front. Carat Wednesday was named the search marketing agency of record for Virgin America, the U.S. spin off of Europe's high-end airline, which was launched in August.

The account includes a variety of paid search marketing and search engine optimization services, and will be managed by Carat's San Francisco office. Billings were not disclosed, but the assignment is an important win for Carat, which has been a finalist in a series of high-profile account pitches recently, but hasn't come up with a big win in a while. The Carat team, which recently was named global media agency of the year for the second year in a row by Europe's influential Campaign magazine, is sweating out the final decision in a heated pitch to retain its role as media agency for Hyundai/Kia's U.S. media shop. An announcement on that decision, which is down to incumbent Carat and contenders Initiative and Havas Media, is expected any day now.

On Wednesday, Carat parent Aegis Group reported a relatively strong update on its outlook on its financial results for 2007. While final results will be released March, 19, 2008, Aegis said indications through the first 11 months of the year are that organic revenues are up 9.6% through the first half, and continue to be "very strong and significantly ahead of the market" both for its media operations and its marketing and media research operations.

The company said "organic revenue" growth for its media operations has been "strong across all regions in the year-to-date, reflecting our leadership in digital and a good record of new business wins over the past two years, including General Motors in Europe and Twentieth Century Fox internationally.

"Net new business momentum has remained good, with second half major wins including Mattel internationally, The Coca-Cola Company's consolidation in the UK, Kellogg's in the Nordics and Outback Steakhouse in the US." The update did not reflect Carat's win of the Virgin U.S. search marketing account, but the win is an important vote of confidence in Carat's new integrated model.

"Carat brings a sophisticated knowledge of search marketing and, most importantly, has an in depth understanding of how search integrates with a broader on and offline marketing communications program," Porter Gale, vice president-marketing at Virgin America, noted in announcing the assignment.