Network.
However, advertising can and does work, it's how you go about it and who your target market is. Identify your key services and who you think will benefit from them. An ad in the local rag will usually only drum up business from start-ups or wasters. Cold calling is simply not the way to go. Think of inventive ways of getting your company name 'out there'.
Do a bit of P&R! Magazine article contributions, press stunts or anything gimmicky. I've found that a lot of energy and commitment to a chosen concept will reach and impress the right people.
Personally, I'd ditch the advertising for now and work on your business structure and image. What's your USP? Any prospective client that visits your site will lose interest if they can't identify what it is that you do - which I couldn't (didn't want to) on first inspection.