Obviously there are reasons to go with each of these types of advertising, the main one of course being cost. We also would look at the affective audience and the intended type of project for what best suits its nature. I mean, if you have a slick video with a new dance move that just happens to involve a product you're marketing, you're most likely not going to tie that in to a series about perfecting that dance. In that scenario, it would be far more appropriate to make a 4 minute video, possibly showing a couple of people trying the new dance and having a good time, preceded or followed by the correct way to do the dance, the product prominently featured.
MTV, the original reality series creator (with Real World followed by Road Rules), may be on to something. So far they have partnered in such branded entertainment ventures with the likes of Hewlett Packard, Ford Motor Company (who I just mentioned in another blog), General Electric, Microsoft and Yahoo. The latter of which was just the subject of a study which showed it to be atop the online news source pyramid (at least for August).
So the point of this episode is merely to underline the growing popularity of internet marketing. Be it through small viral campaigns (which can still cost a considerable amount of money... just ask Cartoon Network), or through wide scale series shorts broadcast over the web through large media partnerships. It is cropping up everywhere, advertising to us at all moments of our digital interaction. And it is always important to keep that in mind when you are devising your next campaign. Originality is very important when trying to take away audience share from major partnerships like MTV and Hewlett-Packard.