What businesses can benefit from being on a local website? 

Question 1: What businesses do you think would benefit most from being on a local website in your hometown?

If I were to give my own personal opinion, I think any business from small to large benefits from being on a local website in my hometown.  Though I think it can great help smaller companies starting off, the big guys get benefits as well.  For example, anytime Walmart is having a sale that places gets packed and makes a killing in sales.  Even though they have a good amount of customers flowing through, they still gain from promoting on local websites.  On the other end of the spectrum, coming from a pretty rural area, smaller businesses get their name out early and often which allows them to build credibility quicker.  At the end of the day, America is a big cyber heavy society and in order to thrive you have to get your name out there any way possible to hold on to a foundation of profit.

Question 2: How do businesses that provide such local Web services differ from newspapers and Yellow Pages?

As I stated before, the web is a benefit for everyone.  People have to work and do more in order to get a copy of the yellow pages or a newspaper, but the internet is right at your fingertips.  To be frank, people are going to do what is easier.  I am willing to bet that when someone is going to a new establishment, they have looked up reviews on their phone or computer to get a feel for the place ahead of time.  My point is when a business uses newspapers or the yellow pages, it might help an initially impressions out, but there is only so much info you can fit in those spaces.  Online the world is at your fingertips.