Forbes posted an article this week about Yahoo!’s decision to pursue more local advertising. With advertisers spending more than $120 billion annually on local advertising, it’s safe to say that Yahoo! wants a piece of the pie.

The Sunnyvale, CA-based company aims to target companies that advertise in local newspapers, and on radio stations and web sites. Some companies on their radar include: Burger King, Dunkin’ Donuts, Home Depot, Pizza Hut, and State Farm Insurance, to name a few. The new emphasis on local advertising takes a nod from Google’s strategy to extend beyond its search business foundation.

According to Yahoo!, local clients will become increasingly important to the company’s regional advertising campaign. “We’re laser focused on this segment of the market,” posits Lem Lloyd, Yahoo!’s vice president of channel sales for North America. To Lloyd, many of these marketers – with their billions to spend – provide a virtually untapped market for web-based advertising services. Because, when it comes to local advertising, only 1% or 2% is spent online.

Via Laurie Burkitt @ Forbes