A system and method for coordinating advertisements on multiple playback devices during playback of heterogeneous content are provided. In general, a virtual group of playback devices or users of the playback devices is formed and managed by a virtual group (VG) control function. In operation, the VG control function operates to coordinate advertisement slots in heterogeneous content being played by the playback devices and provide targeted advertisements to the playback devices for insertion into the coordinated advertisement slots. The targeted advertisements may be, for example, targeted advertisements for each user or playback device, targeted advertisements for subsets of the users or playback devices in the virtual group, targeted advertisements for the virtual group, targeted complementary advertisements for subsets of users or playback devices in the virtual group, or targeted complementary advertisements for the virtual group.