Nextdoor Introduces AI Click Optimisation to Boost Hyperlocal Advertising Performance

Nextdoor has announced a new Click Optimisation tool that makes use of artificial intelligence to help brands attain a higher level of success in hyperlocal advertising. With this tool, brands can attain a higher level of success in hyperlocal advertising while spending the same amount of money. During beta testing, brands such as security firm Verisure experienced a 75 percent increase in click-through rates compared to those that utilized a normal CPM-based model, and this came with a corresponding drop in costs of up to 75 percent, thus resulting in up to four times as many clicks as before.

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The new functionality is part of Nextdoor’s expanding smart advertising ecosystem built within its proprietary Nextdoor Ads Manager (NAM), which launched in the UK in 2025 and provides advertisers with enhanced targeting, campaign control, and performance insights. In addition to Click Optimisation, the platform is rolling out features such as maximum impression optimisation, expanded video ad formats including carousel and square formats, and a pilot suite of AI tools that can generate ad copy and creative assets. With more than 10 million verified users in the UK—representing roughly one in four households-the platform aims to help brands connect with local communities through highly relevant neighbourhood-level targeting, enabling businesses to engage decision-makers within trusted community networks while improving overall advertising efficiency and ROI.

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