It certainly was used in a Rolo advert. If I remember correctly - which may well not be the case - the advert featured someone eating a Rolo and looking unwarrantedly orgasmic; "It's that Rolo sensation" was the punch line.
Interesting to note about the "A" side of this novelty record as I have two copies of the disc. Take 1 with the matrix no. on the dead plastic reads 7XCC 303-1, and is without the audience background noise.
The other copy with the audience background noise has the matrix no. on the dead plastic reads 7XCC 303-2 as featured on the You Tube audio copy on here.