It’s very interesting and even strange stuff. The distinction between content and advertising is becoming less relevant all the time – it’s all about distribution, scale, and the ability to get in front of and (the next Great Realm) target specific kinds of consumers.

The deal between Google and Family Guy creator Seth MacFarlane to distribute a new two-minute animated show, Seth MacFarlane’s Cavalcade of Cartoon Comedy, is important on several levels.

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The innovative part involves the distribution plan. Google will syndicate the program using its AdSense advertising system to thousands of Web sites that are predetermined to be gathering spots for Mr. MacFarlane’s target audience, typically young men. Instead of placing a static ad on a Web page, Google will place a “Cavalcade” video clip.

Advertising will be incorporated into the clips in varying ways. In some cases, there will be “preroll” ads, which ask viewers to sit through a TV-style commercial before getting to the video. Some advertisers may opt for a banner to be placed at the bottom of the video clip or a simple “brought to you by” note at the beginning.

There are a number of factors to look at here – from the significant investment being poured into an online-based show to its two-minute running time. The most important angle, however, is that Google is partnering with a high profile content creator to distribute a highly produced animated show to millions of viewers via its Google AdSense program.

The questions over how successful it will be are many of course, but Google and MacFarlane are starting out with sharp assumptions: animation is popular on the web, Family Guy itself is one of the most popular TV shows that people watch online, and MacFarlane himself is a geek’s geek, idolized by the men and young people most likely to watch shows online. The Times goes on to report: “In an interview, he described the installments as ‘animated versions of the one-frame cartoons you might see in The New Yorker, only edgier.’”

And on the distribution side, Google AdSense gets you in front of millions of viewers. If you’re online in anything like a regular manner, you’re going to be exposed to MacFarlane’s new show. It’s just that simple.

Now, the quality of the new show is obviously going to affect how popular it is, but more than likely that won’t be a huge factor in the overall storyline. More interesting questions: will people reject the notion of shows playing through slots set aside for advertising? Will some publishers feel that MacFarlane’s Cavalcade will upstage their own content? Will viewers accept the advertising-on-content that Cavalcade will utilize?

And perhaps more important than anything: will Cavalcade prove to be a money-making venture?

If the answer to that question is anywhere close to a yes, then we’re seeing a huge shift right now, right here, in how content will be thought about, produced, and distributed from here on out.

More on the story and reactions:

* : “Google distributes the clips via its AdSense network, and places ads on them. Revenue is split between AdSense publishing partners, Google, MacFarlane and Media Rights Capital, the company that sells the ads and funds the clips’ production.”

And: “MacFarlane will also create custom animated ads for sponsors for a significant extra fee.”

Wow to that last bit.

* : “The web is such a dynamic place and while advertising continues making the move to it, it’s thinking outside of the box that will likely pay off in the end. That worked for Google the first time around, can it again? And if it doesn’t, MacFarlane can always sell the content on DVD.”

* : “There is a great potential at furthering this process, as it offers something for everyone; publishers get to use something far more interesting to replace the text based ads. With the trend of video ads getting more clicks than those based on text, the idea signals great potential at pumping more revenues through the AdSense system; once the system achieves success.”

* : “The potential for this type of system is pretty massive because everyone wins. Publishers serve something way more interesting than a typical banner or text ad, advertisers get to reach their target audience with video, and Google gets more data based on how the shows perform on different web sites. Also, video ads traditionally have much higher CPMs than text or display ads, meaning it’s potentially a lot more money that can be pumped through the AdSense ecosystem if the format proves successful.”