The universe is expanding — the Local Commerce Universe (LCU) that is. Comprised of companies that derive revenue from local commerce and advertising, it will reach $440 billion by 2021, up from $285 billion today.
Digital media & advertising has the largest share of LCU revenues. But the most growth will come from on-demand and local commerce, whose share of LCU revenues will grow from 15 to 24 percent by 2021.
These growth rates and share shifts will come about as “local” moves well beyond just advertising. It’s increasingly about the toolsets that help local businesses operate and keep business… not just acquire it.
In that light, BIA/Kelsey research continues to show a shift from advertising to marketing. This happens as local businesses drive awareness, differentiation and value-props through a variety of touch points.
That makes the LCU’s boundaries contain social, mobile, video, programmatic and a range of Martech to distribute content. Right now it’s 730-companies deep… but like the actual universe, it’s quickly expanding.
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LCU market growth — and the best practices seen today to capture that growth — will be a central theme at next month’s BIA/Kelsey ENGAGE. Use the discount code “engageMB” when registering.
[Update: The figures reported in the above video were effective during it’s December time frame. They have been updated in the written analysis above.]
