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Nextdoor Puts Ads In The Community Conversation
Big Buck Boulevard // Illustration by Kate Walker
Local-community-focused social platform Nextdoor is making a big play for advertising dominance by focusing on geographics instead of demographics.
The Big Pitch: Nextdoor’s ad business is still a long way from competing with larger platforms like Meta, TikTok, and X. But the division is growing, with revenue increasing 15% to $75 million last quarter. By leaning into what Nextdoor already does best — connecting neighbors — the company hopes to carve out an important niche in the market.
Between The Lawns: Nextdoor is monetizing the neighborhood.
Its new tool, “Neighborhood Intelligence,” has mapped 350,000 individual neighborhoods across the US to create a “neighborhood graph.”
According to Insider, marketers can use the graph to see how people in different neighborhoods are talking about their brands.
That allows brands to “target specific geographies with ads on Nextdoor that speak directly to those conversations.”
Several blue-chip companies, including Pepsi, are already exploring the tool.
Last Looks: Nextdoor CEO Nirav Tolia told Insider that the ability to tailor marketing to specific neighborhoods is especially powerful for businesses with inconsistent sales across regions, such as restaurant chains or car dealerships. It could also allow brands to analyze how certain neighborhoods have strikingly similar or wildly different purchasing patterns.
Ultimately, Neighborhood Intelligence is a bet that where people live IRL is the best way to reach them digitally.
Prediction: Nextdoor could prove especially useful for launching small, location-based businesses. After all, there’s no better customer than someone who lives down the street.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.