Nextdoor Introduces AI-Driven Ad Performance Optimization and New Video Ad Formats

Nextdoor Holdings, Inc. , the essential neighborhood network, announced AI-powered ad optimizations, new video formats, and the piloting of new locally personalized advertisements available through its advertising platform, Nextdoor Advertising Manager (NAM), to maximize the power of Nextdoor’s hyperlocal advertising.

Advertisers come to Nextdoor to reach real people who are ready to take action right where they live. This suite of new advertising innovations is designed to make it easier for brands to reach 100M+ high-intent, neighbors across 345,000 neighborhoods with more relevance, efficiency, and impact. Advertisers can now deliver smarter, more engaging creative across the Nextdoor platform.

“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.”

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New advertising solutions on Nextdoor Advertising Manager include:

• Click Optimization/Conversion Optimization Powered by AI: Advertisers can now tap into smarter advertising with AI and Machine Learning innovations within click and conversion optimization, introducing cutting-edge features designed to optimize performance across the entire marketing funnel.
  • Click optimization (US only): improves campaign engagement by automatically optimizing for higher click-through rates. In testing over 11 months during 2024-2025, advertisers have already seen an average CTR lift of 134% when comparing it to CPM bidding.
  • Conversion optimization (US only): drives better results by optimizing campaigns toward conversions. In initial testing during the same period, conversion optimization advertisers had a median 35% improvement in average CPA.
  • AI targeting and delivery recommendations (Piloting in all markets – US/CA/UK): provided during setup and post-delivery, this feature leverages personalized business and industry insights to improve setup and campaign performance.
  • AI-powered image and copy generation (Piloting in all markets – US/CA/UK): powered by ChatGPT and 3M+ photos from Pexels’ global community of photographers (all with commercial-friendly licensing), this enables advertisers to instantly generate relevant copy and engaging creative assets, making it faster and easier to build high-quality ads.
• Expanded Video Formats Globally (All markets – US/CA/UK): New, flexible video ad formats make it richer to activate and distribute video campaigns across Nextdoor. Videos can now be utilized within Carousel ad formats, featuring deeper reporting into individual card performance (impressions, clicks, and click-through rates, and a new industry-standard “Engagement” metric). Advertisers can now capture attention with sight, sound, and motion in more placements, driving deeper engagement with verified neighbors.

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Currently piloting the following personalized advertising formats:

• Geo-Personalization Extended to Image Ads (US only): In addition to the use of dynamic city and neighborhood names in ad copy, brands can now elect to automatically plug-in neighborhood or city names directly in their images, Spotlight ad creatives, and in-feed ads on Nextdoor to drive increased local relevance at the neighborhood level across the country. Geo-personalization allows advertisers to connect with neighbors in contextually relevant, hyper-local ways, with advertisers already seeing geo-personalization drive increased engagement in ad copy.
• Weather Targeting (US only): contextual weather targeting to reach neighbors with more relevance allows advertisers to provide the right message at the most relevant time, enabling brands to align campaigns with local, real-time conditions. With three new options for temperature-based targeting (Cold: 40-50F / Moderate: 50-80F / Hot: 80-100F), selecting these will target your ads (ex. promoting hot beverages during cold temperatures) to neighbors whose locations fall into these temperature ranges.

These innovations deliver a powerful dual value proposition: advertisers gain enhanced efficiency, creative flexibility, and superior results with neighborhood-level precision, while neighbors experience more useful, relevant ads that reflect their everyday local context. By combining Nextdoor’s unique neighborhood-level trust and engagement with advanced AI capabilities, these solutions transform local relevance into measurable business impact, directly addressing advertiser demands for richer storytelling formats, contextual real-time relevance, and AI-powered efficiency at scale.