According to research company Borrell Associates, local online advertising will reach $7.7 billion in 2007 - a 32 percent growth. The top ad categories are and will remain paid search (nearly doubling to $1.8 billion), local email (up 54 percent to $233 million) and local banners and listings (up 18.4 percent to $5.6 billion).

It's a clear indication that even the smallest brick-and-mortar local stores are realizing the power of the Web. Not only what it can do for business, but as a necessity.

The report indicates that real estate and automotive are the top local ad categories - totaling one-third of local online advertising. The real estate market has benefited greatly from online advertising and promotion. Real estate has also thrived by using free classified ads, from providers such as Craigslist - who attracts more than 10 million viewers per month. It's all good news for local business. Not only do you have the option of advertising for free on Craigslist, but newspapers have had to adjust by offering special deals and lower rates on their print and online classified ads.