Local Businesses: Social-First, Tech-Driven, and Highly Adaptable
In today’s rapidly evolving digital landscape, a new breed of businesses is emerging. These businesses are rewriting the playbook by prioritizing social media, embracing advanced technologies like artificial intelligence (AI), and maintaining agility in the face of uncertainty. Constant Contact’s latest Small Business Now report sheds light on these trends, offering valuable insights for multi-location brand CMOs and agency executives who want to understand how local businesses are evolving—and how they can adapt their own strategies to engage local presence.
Social-First—But Not Social-Only
Social media has cemented itself as the dominant marketing channel for new businesses. According to the report:
- 63% of SMBs rely on social media as their primary marketing channel
- 73% cite paid and unpaid social media posts as their biggest revenue drivers
- 54% plan to continue using social as their top marketing channel in 2025
This shift makes sense. New business owners are digitally native and understand that social platforms offer direct, low-cost access to their target audiences. However, savvy entrepreneurs are also diversifying their marketing mix, recognizing the value of email and SMS marketing to convert followers into customers and nurture long-term relationships.
- 33% see email marketing as underutilized and plan to expand its role in their strategy.
- Despite high engagement rates, only 15% currently use SMS marketing—an opportunity for those looking to differentiate themselves.
For multi-location brands and agencies, this presents a compelling opportunity: how can they help local storefronts to integrate omnichannel marketing strategies to drive customer acquisition and retention?
Technology & AI Are Fueling Growth
One of the most striking takeaways from the report is the rapid adoption of AI among local businesses. While AI has been a hot topic for years, these new entrepreneurs are not just exploring it—they are actively integrating it into their business operations:
- 91% of new businesses say technology is essential to their success
- 72% plan to use AI in their marketing strategies in 2025
- 41% of highly confident owners are already using AI to analyze customer data
For agencies and enterprise brands working with local businesses, this highlights a crucial shift: AI is no longer a future consideration—it’s a present-day reality. Helping locations navigate AI-powered marketing tools will be essential to staying competitive in this evolving ecosystem.
Resilient, But Realistic: Outlook for 2025
While optimism remains strong, Local businesses are also preparing for potential challenges ahead:
- 45% feel very confident about growth in 2025, but 55% express hesitation due to external pressures
- 35% cite economic uncertainty as a key challenge
- 52% say customer acquisition is their biggest marketing hurdle, followed by retention (28%)
For brands and agencies, this means understanding the shifting needs of storefronts and equipping them with the right tools, strategies, and resources to succeed. Whether through AI-driven insights, omnichannel marketing, or strategic partnerships, now is the time to align with this new wave.
Final Thoughts: What This Means for Multi-Location Brands & Agencies
As Matthew Montoya, of Constant Contact told Street Fight, “Even in times of economic uncertainty, innovation and adaptability remain strong across industries. Franchises, agencies, and organizations of all sizes continue to seek new ways to grow and connect with their audiences. They’re turning to AI-powered tools to personalize marketing efforts, streamline engagement, and drive efficiency—ensuring they can do more with less while also staying competitive in a rapidly evolving digital landscape.”
SMBs are shaping the future of commerce with their social-first, technology-driven approach. To engage and support local presence businesses effectively, multi-location brands and agencies must:
- Leverage AI and automation to enhance marketing strategies
- Offer solutions that integrate social, email, and SMS marketing for a cohesive customer journey
- Help locations tackle customer acquisition and retention challenges through data-driven insights
The local business landscape is evolving rapidly, and those who can help guide locations alongside it will thrive.
