In the face of declining print readership, both the Denver Post and Rocky Mountain News have touted the increase in online traffic their Web sites have been receiving. But Westword has dug a little deeper and found that most of their online readers are from out of state, which is a much less appealing audience for local advertisers.
Should Local Advertisers Think Twice Before Purchasing Ads on the Post’s and News’ Web Sites?
Denver Public Relations Blog 
Interesting timing – the New York Times ran an interesting story on this subject yesterday re: the declining value of online advertising in any realm other than search advertising. Valuable read to build off of this consideration at a local level… Headline: “Online Search Ad’s Fairing Better than Expensive Displays”
http://www.nytimes.com/2008/05/19/technology/19online.html?_r=1&scp=1&sq=online+advertising&st=nyt&oref=slogin