The agency, which counts Mercedes, Sony PlayStation2, Egg and most recently Bupa Hospitals as clients, will now be known as Claydon Heeley and has redesigned its logo to reflect the name change.
Rebeccah Rumph, marketing manager, said that the new shortened name came "on the coat tails of wanting to move to more one-to-one and digital advertising" and having a fresh and new look.
Former Philippe Starck designer Simon Clark of DesignSpy created the new logo, which incorporates the agency's signature orange colour.
Claydon Heeley is part of the recently set up Zulu Network, a collection of Omnicom below-the-line agencies including digital advertising agency Agency Republic, headed up by Martin Brooks who also leads Zulu.
Agency Republic is the digital-only agency within the Zulu Group and Claydon Heeley says its new emphasis will not clash with the direction of Agency, but that the two companies would remain close.
Mike Welsh, managing director of Claydon Heeley, said: "Digital is already 25% of our income so the opportunity of increasing this capability, ahead of client expectation, makes commercial sense"
"How we differ from Agency Republic is very simple. They are a creative agency that does digital advertising, media planning and buying, and Claydon Heeley is direct agency in the modern sense, ie integrates on- and offline."
Welsh also stressed that the rebrand was a reflection of gradual internal moves towards digital, rather than a sudden repositioning.
"This is an acceleration of our move into the digital space, and it's about reskilling, hiring and training -- and the rebranding is just an external expression of that."
In January, the agency recruited Agency Republic co-founder Tim Millar as planning director. Good Technology's Sam Bertram joined as head of digital in May.
The agency hopes Bertram will advise existing staff on delivering digital campaigns to its clients.
Rumph said: "Sam will be acting as a resource to help our client services, studio and creative teams get up to speed with the digital field."
Last year, Nigel Jones, former chief executive and founder of the business, made a surprise move to FCB London.
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