According to a new report from Borrell Associates, "The New Frontier: Local Online Video Advertising," local online video advertising will more than double this year, increasing from $161 million in 2006 to $371 million.

Although local online video advertising currently accounts for less than 5% of all local online advertising — which is expected to hit approximately $7.7 billion in 2007 — Borrell analysts predict that in five years it will exceed $5 billion and account for more than one-third of all local online advertising.

The main driver?

Increasing competition between local online newspaper, radio and TV sites, each attempting to poach one another’s business.

As stated in the report, "Print media are using the Internet as a crossover platform to tap traditional TV advertisers, just as TV stations (and others) are trying to use the Internet to tap traditional print advertisers."

It would appear, so far anyway, that newspapers are winning.

Borrell reported that newspaper-run Web sites took in $81 million from streaming video advertising in 2006, compared with $32 million for TV station Web sites.

Local TV stations are striking back, however.

The survey found that while the majority — some 80%, in fact — of the TV stations surveyed didn’t sell video ads on their sites last year, 94% intend to start selling them this year.

Via eMarketer