Digital transformation is no longer a learning curve for local businesses, it's become their reality. After years of adopting separate tools and platforms, these businesses have reached digital maturity. They know what works, what doesn't, and what they're willing to pay for, and they’re being far more selective with their tech.
We're calling this shift the “Great Consolidation,” and our latest survey of 500 local businesses in the U.S., conducted in December 2025, reveals exactly what it means for publishers in 2026.
The numbers tell a clear story. The percentage of local businesses using between two and four tools dropped from 66% in 2023 to 59% since 2024. Even more telling is that 35% switched providers last year, citing lack of needed features as their primary reason.
These advertisers are actively seeking all-in-one solutions, with 64% saying they'd be likely or very likely to purchase such a tool. In fact, 43% would actually pay more for a solution if it reduced their total number of tools.
This presents a critical challenge for publishers. When local advertisers are being more selective about their digital investments, publishing services often don't make the cut. This is a direct indication that lead delivery alone doesn't present them with the outcomes they’re looking for.
Here's what local advertising clients are telling us: they want a way to manage the leads publishers send them, not just a spreadsheet of names.
When a lead goes into an inbox, the beautician working with a client or the plumber on a job can't reply in time to convert those leads. These businesses prefer tools that help them respond immediately and manage the entire client lifecycle, from communications to scheduling and payment collection, all in one place.
Publishers who align with this “Great Consolidation” movement and expand their offering to include business management and conversion assistance will win the market. Those who stay focused solely on leads will struggle with retention.
Managing cash flow remains the single most significant stressor for local business owners. Financial instability is also their biggest barrier to growth.
Perhaps exacerbating those cash flow issues is the fact that 37% of local advertisers struggle with late payments. Given this, it’s no surprise that 44% would be willing to invest in solutions at a higher cost if they could manage expenses better and save in the long term. Perhaps most telling, 87% currently automate billing, invoicing and payment collection processes to collect faster or more on-time payments.
This reveals the uncomfortable truth that if local advertisers ever have to choose between publishing services and payment collection tools, they'll choose the latter every time. It's not about preference, it's about survival.
Publishers who provide tools to help their local advertisers get paid faster transition from a transactional vendor to a strategic partner these businesses can't afford to lose. This approach also helps publishers prove more valuable ROI. When a business runs their payment collection through a publishing company's solution, the publisher can more easily prove attribution and revenue they helped secure, building loyalty and reducing churn.
Local advertisers’ AI usage has grown to 45% in 2025, with 40% of those users engaging with it daily to impact their businesses. Nearly 50% of local businesses looking to purchase an all-in-one app expect it to include AI.
However, jumping on the trend by merely incorporating a flashy AI feature is no longer an effective strategy. These advertisers want assistive AI for handling admin like drafting communications and scheduling. For time-strapped local business owners, the true value of AI lies in its significant time savings, so publishers need to keep that in mind when developing AI tools for their clients.
Publishers looking to unleash AI solutions must take into account the fact that local advertisers aren't ready to hand their operations off completely. Though 55% are comfortable allowing AI to automate tasks, 59% want to approve all AI actions and 68% want to test it extensively before releasing the reins.
Therefore, publishers who want to gain a stronger hold of the market must find the balance that brings valuable AI tools to local businesses without making them feel like they're losing control of their business.
Local advertisers aren't solely consuming lead delivery services anymore. When asked what they use their tools for most, marketing ranked third after collecting payments and growth.
These advertising clients are looking to minimize fragmented digital experiences and maximize value. This means focusing on vanity metrics like leads, clicks or engagement has to be replaced with proof of business outcomes like deals closed, revenue generated and loyalty increase.
To deliver on these outcomes, publishers must bundle solutions and present results, instead of tools or one-off services. Operational tools like billing, invoicing, payment collection, scheduling and client organization will help publishing companies gain a stronger hold of their intended audience.
For years, local businesses have been asking for an all-in-one solution. Now, with the downward trend of multiple tool consumption, it seems they're walking the walk.
2026 will be the year of “business in a box,” where more providers serving local advertisers will be forced to face the reality that keeping services siloed puts them at risk of churn. Bundling solutions that provide tangible business benefits like time saved, business growth and boosted revenue is the only way for a publisher to future-proof their business. Unfortunately, lead delivery alone does not provide that ROI.
Publishers who are willing to expand their offerings and include these value propositions will easily win the market.
The local advertiser we know today is digitally mature, selective and ready to invest in partners who understand their real needs. The question for publishers is simple: will you evolve with them?
If you’d like the full picture of what the 2026 SMB tech stack looks like, download our full report.
