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The arm will be run by Alex West, the former managing director of the production company, Hungry Eye, and the manager of the Viral Awards.

The APA BCG aims to provide a business and legal framework for companies moving into branded content and will offer advice on contractual and copyright issues. It will also provide a forum to discuss industry issues and will promote members' services and expertise.

"We're launching the group because virals, interactive commercials, advertainment and mobile phones represent new ways for advertisers to communicate with clients," Stephen Davies, chief executive of the APA, said.

Although the majority of APA members are predominantly producers of TV commercials, a number are currently in production on branded content projects.

Founder members of the APA BCG include the Viral Factory managing director, Matt Smith, and the managing director of the production company Blink, James Studholme.

"We're delighted to be a member of the APA BCG and to work with the APA to shape the industry and ensure its potential is fulfilled," Smith said.