Recent report does not paint a rosy picture for the local advertising market. Lots has been written about and plenty of startups have looked at local advertising as the Holy Grail of revenue growth (although keep in mind that no one has actual found the Holy Grail!).
It shouldn't be too hard to guess why local advertisers have not flocked to the web. They are local businesses after all, with limited growth abilities which inhibit how much they can justify resources for managing web marketing. Word of mouth and location and good service are always going to be the hallmarks of a local business' marketing backbone.
Successful online marketing services for local advertisers will be the ones that can save local business owners money and time and still yield the same target % of new local customers.
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