Advertiser-funded programming (AFP) and sponsorship start-up Krempelwood has sealed deals to deliver sponsors for up-coming shows from Sony Pictures Television International, BBC Worldwide, Universal Music and UKTV.

The week-old London-based agency was created to help secure advertiser funding and sponsors for upcoming programmes and online commissions - details of which have yet to be unveiled. It has been formed by Blair Krempel, who managed AFP agency Sponsorvision for 15 years, and former 19 Entertainment head of brands Mark Wood.

Wood also spent 13 years as commercial director of Sky Media, while Krempel brokered the deal that tied Cadbury to Coronation Street for more than a decade.

Wood said: “The company was set up because broadcasters just aren't able to give production companies the full funding for programmes any more.

“Independent companies have to exploit their secondary and off-air rights after production to make up for funding shortfalls. This may be fine for the larger companies, but smaller -companies may not be able to sustain it. Securing an advertising partner which can contribute funds could be a vital element in -programme-making.”

The company is predicting the UK advertiser-funded market will grow 15% year on year and that it will flourish around the world. The company is already in talks to expand into New York and Asia.

Wood said: “It will really take off when people can see how successful it can be. When one hit programme comes along that has been advertiser-funded, the growth will be exponential.”

The company will also focus on putting together product placement deals for online content. At the moment it is in talks about replicating the kind of deals that were brokered for Sofia's Diary and Kate Modern.

“It is an emerging market and for online dramas it is already a popular tool. Provided it is done sympathetically and the audience is in no doubt of what the product's relationship with the show is, I believe it will be a key part of the future,” he said.

Product placement has already been tipped as the next big thing by technology investor Ron Conway, who recently told the TechCrunch 50 conference in the US it offered enormous untapped potential.

Conway, who was an early investor in the likes of Google and PayPal, said: “There's a new multi-billion-dollar market developing before our eyes and it's product placement. It will be a big revenue driver and will join search and display advertising as the next billion-dollar ad market on the web.”