Ads inside Google Video

Google videos now seem to have ads inside. Watching a clip from the Charlie Rose show provided 2 advertisements both for Allstate insurance at the 8 minute mark and the 35 minute mark.

The ads work as follows: screen darkens, ad appears with its own timer bar, then ad fades and show resumes. Seemed like two akward spots for commercials as Charlie was in the middle of introducing his guest.

Side ethical questions… if Charlie's show is non-commercial on PBS in the U.S., is it ok for Google to slap ads inside the show? Also, do we as publishers get to choose what ads appear? What happens if it appears like the video I publish "endorses" the product in the ad?

Here is a screenshot:

So the big question is… when will these adverts start appearing on YouTube?

Thanks to John for letting me know that this is also on BoingBoing.