A method and an apparatus are used to target virtual objects to subscribers in a television delivery system. Programs are selected and virtual object locations are defined in the selected programs. The virtual objects available for targeting are categorized and the categories are correlated to viewing population information to determine the optimum targeting of the virtual objects. The virtual objects may be targeted based on information related to groups of subscribers. When a frame of a program includes a virtual object location, a default or an alternate virtual object is displayed. The virtual object location may change over space or time. The virtual object maybe interactive, and maybe used to link a subscriber to a remote location, such as an Internet web site. An operations center or a cable headend may generate group assignment rules that are stored in individual terminals and are used to assign the subscribers' television terminals to groups, based on factors such as area of dominant influence and household income maintained securely and privately within the terminal. A retrieval plan is then generated that instructs the television terminals to select the desired virtual object for display. The television terminals record which virtual objects were displayed, and may use this information to assist in targeting the virtual object.