For the first time, pure-play Web companies have the biggest share of the local online ad market. That news from the Wall Street Journal marks a truly stunning changing of the guard. 

Citing data from media research firm Borrell Associates, the WSJ reported "In 2007, Internet companies had a 43.7% share of the $8.5 billion local online-ad market, while newspaper companies had a 33.4% share, Just three years ago, newspapers had 44.1% of the local online-ad market. Directories such as the Yellow Pages have 10.1% and local television outlets 9.3%. Gordon Borrell, CEO of Borrell Associates, said "Newspapers are tied too closely to defending their print products and have not seen the Internet as an innovative and competitive tool to go out and 

compete." As the newspapers continue to fiddle while Rome burns, web companies such as Google and Local.com as well as many privately owned geo domain based websites are growing rapidly because they have made it cheap and easy for local companies to take out ads.
(Posted Dec. 26, 2007)