By Staff Writer – John Federico (@gadgetboy)

Hyperlocal media has been heating up in a big way with companies like the New York Times, AOL’s Patch Media and a host of small regional shops working to fill the news niche.

Startup PaperG wants to fill the advertising niche within the local media niche. Founded by a group of Yale University students, the two[year old company has raised $1.1 million in its second round of funding to build out it's two advertising networks.

The first is FlyerBoard:

"[...] Flyerboard is a virtual bulletin board on which businesses can post flyers to advertise their services and events. It gives local businesses an intuitive, inexpensive vehicle to attract customers, and provides for many their first foray into online advertising.“

And when the company says “bulletin board” they’re not referring to the BBS’s or online forums. The service looks like the good ‘ol bulletin board you might find in town center or in your local coffee shop.

PaperG’s second network is PlaceLocal which will provide self-service, rich media display ad units which, unlike the FlyerBoard ads, sounds like it will take advantage of standard IAB ad units. (Note: Ad unit sizes have yet to be confirmed.)

PaperG has a number of prestigious media companies it calls clients including Hearst Corporation, Boston.com, Houston Chronicle, San Francisco Chronicle and New York Newsday to name a few and now it has a group of presigious investors.

Participating in the recent financing round were Stephen Taylor, publisher of the Boston Globe’s Boston.com during its first five years of existence, Mark Potts, co-founder of WashingtonPost.com, AppNexus CEO Brian O’Kelley, among others.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

Tags: advertising , Advertising Networks , AOL , Boston.com , Digital Media , Hearst Corporation , Hyperlocal Media , Local News , new york times , Newspapers , online advertising , Online Media , PaperG , Patch , San Francisco Chronicle , WashingtonPost.com