According to a new report by Borrell Associates, $12.7 billion was spent last year in online advertising by local advertisers. Pureplay companies, like Yahoo and Google, earned most of the $12.7 billion, but local media organizations have “turned the corner” with their online operations based on the 2008 data from Borrell.

While local radio stations grabbed just 2% of local online dollars in 2008, the trends might point to expansion of local radio station Websites and social media efforts. Jerry Del Colliano on Inside Music Media has a great post today about the 7 Trends Radio Missed. Jerry reports that many radio stations missed out on the opportunity to engage their listeners through social media. He points to social sites run by entrepreneurs as examples of the kind of content that can be developed to capture local ad dollars. But, Jerry sees radio stations being in a great position to leverage their audience relationships with advertisers. What do you think?