The ambitious plan by STW Communications to create a third agency brand is gaining momentum.

There was increasing speculation that the three-year-old scheme to form a shop codenamed the Great Aussie Agency had fallen by the wayside.

However STW boss, Russell Tate, says "plans are proceeding" to buy several small independents and merge them to form a super agency.

Fame Advertising, 70% owned by STW, is understood to be the nucleus for the new set-up which would sit with the group's other agency brands, Singleton Ogilvy & Mather and J Walter Thompson.

Tate has yet to disclose to which agencies he's talking. Leading independents like Belgiovane Williams MacKay, Ideaworks and FNL Communications say they are out of the frame.

STW posted a 21% rise in net profits to $22.3 million for 2003 with 20% and 40% growth in advertising and marketing services respectively.

Data sourced from: Sydney Morning Herald; additional content by WARC staff