A method and an apparatus are used to target interactive 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 subscriber information to determine the optimum targeting of the virtual objects. The virtual objects may be targeted based on individual subscriber information or 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 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' television terminals to groups, based on factors such as area of dominant influence and household income. 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 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. Interactive virtual objects are received by the television terminal with directions on actions to be taken upon selection of the interactive virtual object. Actions may result in the initiation of processes locally at the television terminal, or communication with a remote site for the initiation of processes to be performed remotely. The invention uses upstream data reception hardware, databases and processing hardware and software, and corresponding features in the televisions to accomplish these functions.