Newspapers are losing ground in the online local market. According to Borrell statistics cited in a recent Wall Street Journal story, newspapers' share of the local online ad market fell from 35.9 percent to 27.4 percent in the last two years. Which means newspapers are missing out - not just on what they have lost in the last two years, but actually on a larger advertising market than the one they had, because local online advertising is growing rapidly, at a rate of 57 percent annually.

Mark Potts, of the Recovering Journalist blog, argues that news sites are missing out on the "Smaller advertisers - the pizza parlors, nail salons, mom-and-pop stores... there are lots of them, and other media are moving in - community papers, local Web sites and blogs, even Google, Yahoo and specialty sites like Yelp."

So how can news sites take the local advertising base back? Potts offers these suggestions (below follows an edited version of Potts' post. Get the full list here):

- Build a strong local product to attract local advertisers, for example the leading local entertainment guide

- Cut costs of ad sales as low as possible, and get rid of the high-commission sales rep. What about commission-only telemarketing reps smiling and dialing to blanket small local businesses.

- Make it as easy as possible for advertisers to come online, create, place and pay for an ad. That drives the cost of sales way down.

- Seminars for local businesses on online advertising. It's a medium that's new to many small business owners - educate them on the value of online advertising and how to take advantage of it.

- Banners and tiles aren't the only way to advertise online. Experiment. Use video. Real estate walkthroughs, chefs describing their restaurants-these videos seem obvious, but they're still few and far between on newspaper sites.

Source: Recovering Journalist