The promise of digital marketing has always been straightforward: get the right message to the right person at the right moment. Actually doing it at scale? That's been the hard part.
We're announcing a new set of advertising innovations in Nextdoor Ads Manager that changes how brands connect with over 100 million verified neighbors across 345,000 communities. These tools combine artificial intelligence with hyperlocal context in ways that weren't possible before.
Why This Matters for Your Business
Cutting through the noise and delivering messages people actually want to see—that's the challenge every marketer faces. The solution isn't just better targeting or more creative formats. It's both, working together.
Our new tools address three things we hear from advertisers constantly:
- Getting efficiency without sacrificing performance
- Having creative flexibility that drives engagement
- Delivering contextual relevance that resonates locally
Here's how we're tackling each one.
AI-Powered Optimization: Enterprise Performance for Every Budget
Our new AI and ML-powered optimization tools introduce features designed to optimize performance across your entire marketing funnel. They analyze thousands of performance signals in real-time, automatically adjusting bids, creative selection, and targeting.
Click Optimization (US only) improves campaign engagement by automatically optimizing for higher click-through rates. In testing, advertisers saw an average CTR lift of 134% compared to traditional CPM bidding.
Conversion Optimization (US only) goes further, driving campaigns toward actual business results. In initial testing, advertisers saw a median 35% improvement in average cost-per-acquisition.
AI Targeting and Delivery Recommendations (piloting in all markets – US/CA/UK) are provided during setup and post-delivery. They leverage personalized business and industry insights to improve setup and campaign performance. Think of it as having guidance at every stage of the campaign lifecycle.
AI-Powered Image and Copy Generation (piloting in all markets – US/CA/UK), powered by ChatGPT and over 3 million commercially-licensed photos from Pexels' global community of photographers, lets you generate relevant copy and engaging creative assets instantly, cutting down the time from concept to campaign.
Here's the big shift: this technology isn't exclusive to Fortune 500 brands anymore. A regional insurance agency can now use the same advanced machine learning capabilities as a national carrier.
Creative Formats That Capture Attention
Strong optimization doesn't mean much without compelling creative. That's why we're expanding video capabilities across the Nextdoor platform globally.
Expanded Video Formats (all markets – US/CA/UK) give advertisers more flexibility to activate and distribute video campaigns. Videos can now be used within Carousel ad formats, with deeper reporting on individual card performance—including impressions, clicks, click-through rates, and a new industry-standard "Engagement" metric.
You can capture attention with sight, sound, and motion in more placements, driving deeper engagement with verified neighbors who are ready to take action.
Contextual Relevance: The Missing Piece
Hyperlocal context isn't just a feature at Nextdoor—it's how the platform works. We're making that context even more powerful for advertisers through two pilot programs.
Geo-Personalization Extended to Image Ads (US only, currently piloting) goes beyond dynamic city and neighborhood names in ad copy. Brands can now automatically plug neighborhood or city names directly into their images, Spotlight ad creatives, and in-feed ads to drive increased local relevance at the neighborhood level. When someone sees their specific neighborhood name in an ad, it signals that the message was crafted for them, not broadcast to millions. Advertisers are already seeing geo-personalization drive increased engagement in ad copy, and now this extends to creative assets.
Weather Targeting (US only, currently piloting) introduces contextual weather targeting to reach neighbors with more relevance. With three temperature-based targeting options (Cold: 40-50°F / Moderate: 50-80°F / Hot: 80-100°F), brands can align campaigns with local, real-time conditions. A coffee chain can automatically promote hot beverages when temperatures drop into the cold range. A home services company can surface air conditioning maintenance messaging when it heats up.
This shifts advertising from interruption to assistance. When your message aligns with what's actually happening in someone's immediate world, engagement changes.
The Cycle of Better Data
Combining AI with hyperlocal targeting has a less obvious benefit: the quality of insights you gain. When you're targeting at the neighborhood level and using AI to optimize delivery, you're not just getting aggregate performance metrics. You're understanding which specific communities respond to which messages, which local factors drive conversion, and how real-world conditions impact campaign effectiveness.
This creates a cycle: better data feeds smarter AI, which delivers more precise targeting, which generates richer insights, which inform future strategy. Over time, your advertising doesn't just perform better—it learns.
The Dual Value Proposition
These innovations deliver value on both sides: advertisers gain enhanced efficiency, creative flexibility, and superior results with neighborhood-level precision. Neighbors experience more useful, relevant ads that reflect their everyday local context. By combining Nextdoor's neighborhood-level trust and engagement with advanced AI capabilities, these solutions turn local relevance into measurable business impact.
Getting Started
These innovations are available now in Nextdoor Ads Manager. Whether you're a local business looking to reach nearby customers or a national brand seeking neighborhood-level precision at scale, these tools are designed to maximize your ROI.
Brands that embrace AI-powered hyperlocal advertising will set the pace. The technology exists, it's proven, and it's accessible.
Ready to transform your local advertising strategy? Visit Nextdoor Ads Manager to learn more about how these innovations can drive measurable results for your business.
