A method and an apparatus are used to place virtual objects in video programs. Programs are selected and virtual object locations are defined in the selected programs. The available virtual objects available are categorized and the categories are correlated to subscriber information. 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 may be interactive, and may be used to link a subscriber to a remote location, such as an Internet web site. An operations center or a cable headend may generate a group assignment plan that assigns the subscribers' terminals to groups, based on factors such as area of dominant influence and household income. A placement plan may instruct the television terminals to display the desired virtual object. The television terminals may record which virtual objects were displayed, and may report this information to the cable headends and the operations center. The reported information is used to generate billing for commercial advertisers, and to analyze viewer watching habits. The invention uses upstream data reception hardware, databases and processing hardware and software, and corresponding features in the televisions to accomplish these functions.