Kanoodle's local ads are based on geography only. They don't have any channel targeting yet. The majority of their local ads are showing on newspaper & tv sites. So, local targeting is based on the fact if it's a NY tv station, then you're reaching a NY audience.
Their only showing 5 ads per page, and it's highest bidder across all verticals which are being shown. It's some good partnerships for them, however, until they get enough advertisers to break the system into geo vertical searches, be prepared to compete against mortgage and debt consolidation companies.