There is a new buzzword in town:
It simply means: Local business enlisting social media to promote themselves within their community.
In the past I have heard local business owners saying that social media works only for big corporations. The reasoning behind belief is that the customers know the shops in the area; everybody can walk by (and in), word spreads fast in the community. No need to tweet around the globe because someone from Amsterdam is not going to become a regular customer of your ice cream in New York.