That's a good point to raise. Two questions:
Would you agree that opinion manipulation in online reviews is already taking place?
If so, would reducing the presence of explicitly-labelled advertisements result in an increase in covert opinion manipulation?
I'm pretty sure there are already issues with regard to the trustworthiness of online reviews. But if we define the value of testimonial by impartiality, then ads are pretty worthless by default. It could be better to rely on sources that at least have the potential of impartiality. I admit this is definitely a complex issue.
I can also understand the ethical argument that it's better to allow sponsored content because otherwise companies would resort to more illegal methods. It's sort of like the drug legalization argument: companies are going to market anyway, so we might as well focus on harm reduction. But it still feels suboptimal in this case. I guess I'd prefer if we focused on preventing misinformation rather than a strategy of appeasement.