I assume by local you mean working basically exclusively for local businesses.
I've read a few articles on the subject and those are good ideas. Putting ads in papers is relatively cheap. Some coffeeshops, bars, churches, and so on will let you put up flyers for free (or if you promise to buy their products

).
Another idea I've thought about doing was through these advertisements, hold a sort of raffle, or random drawing. The idea is that the flyer advertises your services and the drawing at the same time. The drawing is for, say, a simple 1 or 2 page website constructed for Business X for free and hosted for a year or something. Business X will have to go to your website and fill out a form (with contact information, address, so on) to enter the contest. (
Make sure to tell them their information is completely confidential).
That way, you'll have good advertising, you'll get a list of businesses/individuals who are interested in some degree in your services. Once the contest is over, you can contact those businesses saying, "A winner has been selected in Contest X. We regret to inform you that your name was not randomly chosen. However, if you are ever in need of our services please don't hesitate to contact us. Our rates are very reasonable and blah blah blah blah..."
In addition, inform the winner of what they have won, but also offer to expand the prize for a small fee.
However, be sure not to make them feel like you're trying to scam them - if they just want the free 1-2 page site, give it to them.
Remember, you've got a whole list of interested parties.
Also be sure to reassure people you are not out to scam them into buying something. But don't just say "I'm not trying to scam you." Usually, when people say that - they're trying to scam you.
