The locals are no longer yokels.

Local online display and search advertising are set to be the fastest-growing online ad categories, according to JupiterResearch. The research firm recently predicted that local search would eventually compete with national search.

“Although traditional media such as newspaper and local broadcast are facing new challenges regarding their business models, local advertising in these media mainstays is not a dying market,” said Barry Parr, analyst at JupiterResearch.

This analysis agrees with eMarketer's predictions for local online ad growth over the next several years. In 2008, the local online ad growth rate will be nearly twice that of national online ads.

Read more - eMarketer