I'm pretty annoyed right now. The other day I was talking to a mate about games we might be able to coop and I suggested she try Rainbow Six Vegas, describing it made me remember how much I enjoyed it (for a console shooter) and so I've been replaying it.
I get to the las vegas strip, fighting my way down it amongst the ads for deodorant & alt-fashion and then I take cover near a bus shelter. I see the movie poster in the attached image and, as I often do when I see a date in game that's near the real date, I jokingly say to myself that I'll look forward to whatever event it is.
Then it struck me that I didn't remember a remake of clash of the titans from 4 years ago so I put it into IMDB and found the film's page. Notice the similarity in the poster and the date of the film? I think I know what the content of the bloody title update was. The bunch of maternal fornicators wasted my bandwidth to advertise a shitty movie remake...
The irony of it is, the alt-fashion ads now go to a site that doesn't exist so if there was any ads that needed updating...

"Advertising can be described as the science of arresting the human intelligence long enough to get money from it."

No surprise there, really, I was actually expecting in-game advert billboards to come a bit sooner

Actually, the word is the remake might not be all that shitty (in comparison to the original, at least) and its supposed to be the first of a trilogy.
The in-game ads thing does suck though.

Yes, she. I KNOW some women and this one is a gamer

Good for you, I'm in touch with no female gamer at the moment :-|

Am I the only one who thinks in game ads are cool? I don't know, theres something about seeing a poster for another movie or game in my games that makes me think "cool!" ... not sure why... The Axe ones piss me off, except the Rainbow Six Vegas easter egg they threw in.
But I do like in game ads if done right. For example:
Your walking down the fogged up zombified streets of LA and you see a glowing light in the distance. I would much rather see a familiar sight like "coca cola" rather than "JOES POP MACHINE"
Some of Ubisofts placing of ads has been a bit... too much

This happens in more games than you think it does, especially racing games. Usually the billboards/banners etc are placed in a relatively natural position so you don't notice it.
On the subject of jarring adverts though, I'm playing through Metro 2033 and it's plastered with adverts for the very book it's based on everywhere (posters on walls, grafitti, even copies of the books lying about on desks). It snaps me right out of the game whenever I find one.

I'd be all for this stuff if the savings got passed on to the user. It doesn't even follow the usual rubric we've all agreed upon using the internet.
Plenty of sites out there (IGN, Gamespot, etc) post ads that you can have removed by paying a premium. However, once you pay this price, they do you the favor of removing the ads from your experience so that you can enjoy your day.
To place them in games and defer costs makes sense to me--like if they were advertising the new Prince of Persia movie over at Ubisoft it would make a lot of sense because it's at least an internal cross promotion to people who are probably interested in the film due to an interest in Ubisoft.
Hell, I'm even for an ad being placed there that has nothing to do with my interests (even if that's foolish for the publisher) if, as in a NY City hub or Vegas, it helps accentuate the place. If I went to Vegas or NYC I'd be bombarded with ads and billboards that I'm maybe not interested in, so I'm ok seeing it in the game--it creates authenticity.
However, I don't agree with creating a content update (especially one that's required to continue using certain features) if that content update is only used to patch in brand new ad details without creating any incentive.
Now, if I log in and Ubisoft says to me, "Would you like to download a new ad package for Rainbow Six Vegas in return for 100 Ubisoft points," then suddenly I'm a part of the ratification.
They're allowing me to earn some of the new points they've created to buy their own incentivized, achievement based DLC. Hell, I'd even be ok with them just saying, "If you download the new ad pack you get a new gun option," or anything that nods at the send-receive nature of communication and commerce.
It seems to me that for a company that is so in love with protecting their rights and with blaming the consumer, that to place new ads into their games without any sort of discussion or remuneration...seems a little hypocritical and extremely presumptuous.
Now then, with that said, I think Ubisoft is a legit and careful group of game designers and if anyone out there deserves a little slack it might be them. They bring a lot of craft and attention to their titles, even when they fall flat--and they know how to honor a franchise.
However, for a company that has gone out of their way to point fingers at fans with pretty broad strokes--I have to say their leash keeps getting shorter and shorter with me--and I'm much slower to anger than most fans--so they're probably pissing on most of their fans harder than R-Kelly.

So, if you are playing your single player Ubi game that must always be connected to the internet to run, will it stream ads into the single player portion of the game as well? I think yes, but it seems like a intrusive move; then again what does Ubi care, right.

The only ones I'm in touch with only know of one game: Left 4 Dead.
Sad.

Again, this already happens with a number of games - when you're connected online (even if you're playing singleplayer but logged into a GFWL/Gamespy account or similar) it'll pull the ads off the server.
Seriously, this is absolutely nothing new. It's been happening since 2005 at least.