A system and method for selecting and inserting advertisements into a video programming feed at the household level. An advertisement insertion device in a home entertainment system receives a plurality of advertisements from an advertisement source. The advertisement insertion device selects one of the advertisements for display to a viewer according to advertisement selection criteria combined with viewer and system information. The video programming is displayed to a viewer while the advertisement insertion device monitors the programming feed for a triggering event indicating an appropriate time to display the selected advertisement. At the appropriate time, the video programming feed is interrupted and the selected advertisement is displayed. Selecting advertisements at the household level allows advertisers to target viewers with a high degree of specificity. In particular, the advertisement selection criteria may take into account, for example, demographic data relating to the household, the geographical location of the household, of individual viewing habits. The method optionally includes monitoring and reporting viewer response to the selected advertisements.