Nextdoor Launches AI Ad Optimization and New Video Formats

Nextdoor Holdings, the main neighborhood network, launched new AI ad features in its Nextdoor Advertising Manager (NAM) platform. These include improved optimization tools, new video formats, and customized ad experiences. These revisions are designed to amplify local outreach.

Nextdoor connects advertisers with over 100 million verified neighbors across 345,000 neighborhoods. These real people are eager to engage in their communities. The latest updates help brands launch smarter and more relevant campaigns on Nextdoor.

“Advertisers don’t just want scale – they want intent and impact. Our latest innovations are reshaping the way brands connect with over 100 million neighbors by making every impression more relevant and every campaign more efficient,” said Michael Kiernan, Chief Revenue Officer at Nextdoor. “From weather-triggered messaging to AI-driven optimization, we’re giving marketers the precision they need to turn hyperlocal advertising into tangible business results.”

AI-Powered Ad Optimization

The upgraded Nextdoor Advertising Manager includes new AI and machine learning features. These tools boost campaign performance. They help improve results at each stage of the marketing funnel.

  • Click Optimization (US only): Increases engagement through automatic improvements in click-through rates. Across 11 months of testing (2024–2025), advertisers achieved an average CTR lift of 134% compared to CPM bidding.

  • Conversion Optimization (US only): Refines campaigns toward conversion events. Initial tests revealed a median 35% improvement in average CPA.

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  • AI Targeting and Delivery Tips (Testing in US/CA/UK): This tool offers automated tips for starting and managing campaigns. It uses AI to analyze industry insights and improve performance.

  • AI-Powered Image and Copy Generation (Piloting in US/CA/UK): This tool merges ChatGPT with over 3 million licensed Pexels images. Advertisers can quickly create engaging ads and strong copy. It speeds up high-quality ad production.

Expanded Global Video Capabilities

Advertisers can now engage audiences with new, flexible video ad formats across all Nextdoor markets (US/CA/UK). Video can be integrated within Carousel ad formats with enhanced reporting on individual card performance, including impressions, clicks, CTR, and the new industry-standard “Engagement” metric. These updates allow brands to bring their stories to life through sight, sound, and motion, driving stronger attention and connection with verified neighbors.

New Personalized Ad Formats

Nextdoor is testing new geo-personalized ads. These ads aim to provide relevant experiences based on context.

  • Geo-Personalization for Image Ads (US only): Brands can now automatically use local neighborhood or city names in their ad images, Spotlight creatives, and in-feed placements. Advertisers using geo-personalization see higher engagement and click-through rates. Their ads connect better with local audiences.
  • Weather Targeting (US only): This feature helps brands adjust ads based on current local weather. With temperature targeting options (Cold: 40–50°F, Moderate: 50–80°F, Hot: 80–100°F), campaigns can adjust swiftly. They can promote hot drinks when it gets cold. This makes the message more relevant.

Nextdoor’s advancements boost its dual value. Advertisers gain better efficiency, creative options, and neighborhood accuracy. Neighbors, in turn, enjoy more relevant local ads.

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