I think you guys are underestimating the consumers. Ads are supposed to be entertaining, just like tv shows and movies. They're supposed to blur the line between real and fake. At the end of the day, it will be up to the viewer if they'll believe it or not. If you point out that it's fake from the start, it kinda defeats the purpose of ads.
If the ads are meant to be entertaining, they could be more clearly labeled as ads and still be entertaining. They're supposed to "blur the line between real and fake" by being creative and entertaining on their own, not by mimicking the real content.