This study presents the results of a laboratory experiment that considers the implications of adding interactivity to branded in-program overlays, essentially creating a new model of advertising. The results demonstrate the viability of this new model. Interactive branded overlays generate a substantial amount of interactive response and have no adverse effects on the program's viewing experience. However, because program interactivity distracts viewers from their primary goal, processing program content, interactive overlays are perceived as intrusive, and the response rate to in-program triggers is lower than that for interactive ads within the ad break. We show that by carefully combining in-program interactive banners with program-related trivia banners, perceived intrusiveness, and negative spillover effects on the viewing experience can be minimized. Program interactivity was perceived as less intrusive, and was therefore more effective, in the context of a program featuring high- rather than low-pr...