landtuna said:
I don't know about fully integrated commercials but the seamless transition into a commercial (perfected by one Paul Harvey) was a common occurrence in early radio and in some types of early TV shows (notably game shows and sitcoms).
Don Wilson, Jack Benny's announcer and cast member, was famous for announcing the show and cutting right into a commercial seamlessly. Occasionally the cast members (on Benny and other shows) did the commercials themselves without a noticeable break between show and advert.
And, of course, it was common back then to have the sponsor's name right in the title of the show either with or without the star's name. That was because the sponsor owned the time and there was usually only one sponsor. The only show in my recent memory doing that is The Hallmark Hall of Fame and those were some years ago.
A recurring feature on Benny's show was to have the Sportsmen Quartet start out with an actual song, then segue into a musical plug for Luckies (and, later, State Farm Insurance), and I know I've heard one Benny radio show where he joins in the singing on a Luckies commercial.
There's another from "I Love Lucy": Lucy somehow gets the idea her marriage license isn't valid and forces Ricky to propose all over again, culminating in another wedding ceremony at the place where they married on the show and in real life: the Byrum (sp?). River Beagle Club in Connecticut. The old guy who runs the hotel at one point says, "Call...for...," then draws a blank; he can't remember the rest of it (the rest of it is, of course, "Philip Morris").
There was a show in the early '50s, "Martin Kane, Private Eye," sponsored by Sano and Encore cigarettes, and Old Briar pipe tobacco. Every episode had Kane entering the tobacco shop owned by Happy McMahon (Walter Kinsella) for a pack of cigarettes or some pipe tobacco (this was later phased out, with Don Morrow doing the commercials separately from the story during the show's last season).
And one other from Burns and Allen: Von Zell enters George and Gracie's house throwing fake snow and George asks him why he's doing it. Von Zell replies that in places like Southern California snow is not a problem, but there are areas where it is, leading into a commercial for B.F. Goodrich snow tires. (And I stand corrected on the Carnation commercial; there's one with Goodwin from the early days in which he's been out flying his private plane and says he radioed the tower and started talking about the merits of Carnation. George asks him why, and Goodwin says whenever's he near a microphone he just has to start talking about Carnation.)