Borrell Associates just released its 2008 forecast for the local online advertising market.  Borrell expects the overall market will reach $12.6 billion, of which, local search will account for $5 billion (up from $2.5 billion in 2007). In addition, the Borrell forecast predicts that local online video will increase from $400 million to $1.3 billion by the end of 2008. 

More information on the report is available at Search Engine Land and a download of the Executive Summary is available on the Borrell web site.