Yahoo is seeking to extend direct marketing budgets online via a new deal with DM giant Valassis, which claims 15,000 advertisers and reaches 114 million shoppers. The new effort adds another dimension to Yahoo’s local reachout, which currently focuses on newspapers and Yellow Pages. The Valassis relationship has the potential to bring its broadcaster and telco marketing affiliates into Yahoo’s fold as well.

The new deal marks an evolution of the local strategy, which seeks to be all embracing in efforts to win a higher percentage of local budgets for online, while also focusing on specific verticals, such as fast food.

In other local Yahoo news, paidContent reports that Yahoo has dropped some underperformers from its Newspaper Consortium. Yahoo told the newsletter that fewer than a dozen of its 800-plus newspaper members were involved.