U.S. local online advertising is forecast to reach $7.5 billion - 31.6 percent over 2006 levels, according to "What Local Media Web Sites Earn: 2007 Survey," the fifth annual benchmarking report from Borrell Associates, MarketingCharts reports.

Nearly 25 percent of the local media websites in the Borrell survey were on track to generate more than $1 million in gross revenues this year; and 6.6 percent of them are forecast to generate more than $10 million, the research firm said.

According to Borrell's findings:

• Newspapers account for the dominant share of all locally spent online advertising: 35.9 percent
• Pure-play internet companies (Google, Yahoo, Monster, etc.) are right behind with 33.2 percent
• Yellow pages operators control 11.7 percent
• Other Print (e.g., Homes & Land and other local magazines), 9.2 percent
• TV stations, 7.7 percent
• Radio stations, 2.2 percent

Pursuing non-traditional advertisers is becoming the route to growth, according to the report: "The number of locally based online-only salespeople grew 26 percent in 2006. Budgeted figures for 2007 anticipate an additional 35 percent increase in hiring this year."

MarketingCharts provides additional data from the study.