I find this highly disquieting to say the least. The advertising is far too obtrusive for anything, but the most rudimentary of social spaces. Spaces like Home or Second Life. However in the more let us say conventional games this would probably be immersion breaking in the extreme. Imagine that you are playing a game that is medieval fantasy, and you have a cereal promoting avatar wanting to join your group. It totally dispels the experience your trying to create.
I have no issue with advertiser generated events in said games it is mutually beneficial. Especially if they are seamless. In other words they sponsor a quest, and advertise in an appropriate manner within the game. Perhaps handing out a quest for players to complete for a moment of their time. This has multiple advantages both in name recognition, and your regard for the brand.
All in all though it could be a disaster nobody wants to put up with crap that is out of sync with the world. Further more you really need a dynamic world with risk and reward to really make the rewards valuable.
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