I find product placement and 'organic' ads annoying, but I don't think they are as effective as regular old advertisements. If they were, the fraction of the advertising budget would be heavily shifted towards 'product placement' and away from '30 second pre-roll ads' and banner ads.
Advertisers are addicted to what they can measure, you can measure 30 second pre-roll ads and you can measure click-throughs, but you can't really measure how many Nikes sold because Forrest Gump wore them.
