With AOL's hyperlocal digital network Patch.com on track to reach 500 towns by year end, the business of online local news is growing fast.

AOL is not alone; ESPN, New York Times and NPR are all expanding quickly in the hyperlocal online business to capture the ad dollars and viewers. Local online advertising has grown 45% each year for the last five years. Here's a look at the opportunities and pitfalls in this week's New Media Minute. Seattle-based videographer David Albright shot part of this episode!

-Daisy Whitney

Editor's Note:  Daisy's New Media Minute is produced and sponsored separately from Beet.TV.  We are pleased to feature her segment regularly.  AP