WPP chief says Branded Entertainment and Product Placement have good prospects

WPP chief Martin Sorrel came to the MIPTV Festival in Cannes and displayed an interest in product placement and branded entertainment.

Sorrel mentioned that the recession may have a great effect on production, and content producers will have to trim expenses and come up with creative ways to finance their programs.

?Production models are too expensive and will have to change,? said Sorrel. He believes that partnerships between ad agencies, talent, and content producers will be an emerging trend.

?This is actually a big opportunity for content producers, who those who control talent and for the agencies,? he said. ?These groups have to work together to try and develop content that is attractive for the new platforms, particularly the growth platforms of mobile and the Internet.?

The recession has highlighted the fact that branded entertainment is a good alternative to traditional advertising. Not only is the approach just as effective, it is also much cheaper. If you consider the ratio of revenue generated to resources spent, branded content is more profitable than traditional ads.