Are you finding it challenging to cut through the noise and attract local customers who truly matter to your business? In a world flooded with digital ads, it’s easy for your marketing efforts to go unnoticed. But what if you could target your business ads directly to your neighbors—the very people most likely to walk through your door?
Enter Nextdoor, a hyperlocal social platform that connects nearly 1 in 3 London households. With 88% of its users frequenting local businesses at least once a week and making 90% of their purchases within 15 miles of their home or work, Nextdoor provides a unique opportunity for businesses to engage with a highly localized, motivated audience.
Not only that, but with over 55 million local business recommendations shared, Nextdoor neighbors are actively promoting the businesses they love. In this article, we’ll dive into whether Nextdoor advertising is a worthwhile investment for your local marketing strategy.
Key Takeaways: Is Nextdoor Advertising Worth It?
If you’re short on time, here are the key points covered in this blog to help you decide if Nextdoor advertising is right for your business:
- Hyperlocal Reach: Nextdoor connects businesses with local communities, allowing you to target specific neighborhoods and attract nearby customers.
- Engaged Audience: Nextdoor, 88% of users shop at local businesses weekly, making it an ideal platform to build local loyalty and generate word-of-mouth referrals.
- Cost-Effective Ads: Nextdoor’s advertising costs are comparable to other social platforms, offering flexibility for businesses of all sizes.
- Targeting Capabilities: You can target audiences based on location, demographics, and interests, ensuring your ads reach the right people, increasing conversions.
- Build Local Trust: Nextdoor’s community-focused nature helps businesses build stronger relationships with customers through direct interactions, recommendations, and word-of-mouth.
- Simple Ad Formats: Nextdoor offers various ad placements, including Newsfeed and Local Deals, which are ideal for small businesses looking to maximize exposure.
- Nextdoor Business Page: Setting up a free business page allows you to engage directly with your community, post updates, and promote local deals.
- Partnering with Ellington Technologies: Leveraging expert digital marketing strategies with Ellington Technologies will help you get the most out of Nextdoor advertising.
By focusing on these key takeaways, you’ll be better equipped to decide whether Nextdoor is worth adding to your marketing strategy.
What is Nextdoor Advertising?
Nextdoor is a social networking platform designed to help neighbors and communities connect, share information, and stay updated on local news. For businesses, it offers a unique opportunity to reach and engage with local customers, allowing them to advertise directly within the neighborhoods they serve.
Nextdoor allows businesses to build trust with their local community, receive recommendations, and promote their services in a cost-effective and easy-to-use way. Whether it’s driving foot traffic to a brick-and-mortar store or engaging with potential customers online, Nextdoor advertising helps local businesses grow by tapping into the power of neighborhood connections.
Why Pay the Nextdoor Advertising Cost?
Nextdoor offers a robust platform for businesses looking to connect with their local community. It’s not just a place for casual interactions; it’s a unique opportunity for businesses to form meaningful connections with potential customers. Let’s dive into some of the specific reasons why paying for Nextdoor advertising can be a game-changer for your business.
1. Exchange Helpful Recommendations
One of the strongest features of Nextdoor is its recommendation system. Neighbors regularly exchange trusted advice about local businesses. By advertising on Nextdoor, your business has the opportunity to be seen, recommended, and talked about by local residents. These personal referrals are powerful, as they come from within the community itself, adding credibility to your brand.
2. Watch Neighbors Support Local Businesses
Nextdoor thrives on local engagement. Businesses are more than just advertisements on this platform—they become part of the neighborhood fabric. As neighbors interact, they naturally support and talk about local services and businesses. With 53 million business recommendations made by neighbors on Nextdoor, your business can easily benefit from this organic support system.
3. Receive Real-Time, Relevant Information
Nextdoor is not just for casual conversations; it’s also a platform for sharing real-time information. When you advertise here, you can provide instant updates, share timely offers, and promote new products or services in a way that resonates with local audiences. Being able to reach people with relevant information at the right moment can significantly increase engagement and drive foot traffic or online visits to your business.
4. Instantly Connect to New and Existing Businesses
Nextdoor is not just a platform for individuals—it’s a hub where businesses can engage with each other. Advertising on Nextdoor allows you to create partnerships, collaborate with other local businesses, and grow a network of support. Whether you’re looking to cross-promote with other companies or build relationships with new ones, Nextdoor’s hyper-local focus allows you to do that in a meaningful way.
5. Reach Neighborhoods Relevant to Your Business
With Nextdoor’s hyper-local targeting, your ads are shown to users in specific neighborhoods that matter most to your business. Whether you’re targeting certain areas based on income levels, demographics, or proximity to your store, Nextdoor’s advertising options make sure that your ads are being shown to the people who are most likely to become customers. This targeted approach ensures that you are spending your ad dollars efficiently.
6. Establish a Local Online Presence
Establishing a strong online presence is essential for any business, especially when it comes to local engagement. By investing in Nextdoor ads, you’re not just creating short-term results—you’re building a reputation. People will begin to recognize your brand as a trustworthy, community-focused business. This presence can lead to long-term relationships and repeat customers who are loyal to your brand because they’ve seen your consistent engagement with the community.
7. Advertise Local Events
Nextdoor’s platform allows businesses to digitally promote local events. Whether you’re hosting a grand opening, offering a special promotion, or organizing a community event, Nextdoor provides the perfect venue to let your neighbors know. Advertising local events is a great way to get involved with the community, build a local customer base, and increase your visibility in a very personal and direct way.
8. Promote Local Deals
Nextdoor advertising isn’t just about spreading awareness—it’s also a great platform for promoting local deals. By offering discounts or exclusive offers to your neighbors, you can attract new customers while encouraging repeat business. Special deals give users a reason to visit your business and help create buzz that can lead to long-term customer relationships.
9. Increase Brand Awareness
Simply having a presence on Nextdoor can boost your brand awareness significantly. The platform’s focus on local communities means your business will be seen by people in your immediate vicinity who are looking for services and products you offer.
Does Nextdoor Advertising Work?
Let’s take a look at some impactful stats that show why advertising on Nextdoor can be so effective:
- Nearly 1 in 3 U.K. households are on Nextdoor: Your business will be seen by a wide, highly engaged local audience, giving you an opportunity to reach potential customers who are right in your backyard.
- 53 million business recommendations made by neighbors: Nextdoor’s organic recommendation system gives your business a great opportunity for word-of-mouth marketing, allowing you to reach new customers quickly and effectively.
- 88% of members shop at a local business at least once a week: Nextdoor users are not just browsing—they are active shoppers who make decisions and take action. This means your ads are more likely to result in real-world transactions.
- 67% of members share recommendations with their neighbors: Nextdoor’s community-driven model allows for frequent sharing of recommendations, making it easy for businesses to gain visibility through word of mouth.
Consider Your Goals
When deciding whether to invest in Nextdoor advertising, it’s important to reflect on your goals. Here are some key questions you should ask yourself to guide your advertising strategy:
1. How Do I Get People to Start Talking About My Business?
To spark conversation, focus on building relationships with the community. Offer something unique—whether it’s a local deal, community event, or a neighborhood-specific message. This will encourage people to recommend your business.
2. Am I Going to Reach Out to Other Organizations for Help?
Nextdoor allows businesses to collaborate with other local companies. Consider whether partnerships with neighboring businesses could boost your visibility and strengthen your local network.
3. Will I Help Other Companies?
Supporting other local businesses can build goodwill and reciprocity. Nextdoor’s focus on community means that businesses thrive when they help each other out, so consider ways to lift up fellow businesses.
4. How Much Do I Want to Spend on Nextdoor Advertising?
Budgeting is key. Determine how much you’re willing to invest in reaching a highly targeted, local audience. The cost of Nextdoor ads is relatively affordable compared to larger platforms, but you should still have a clear budget in mind.
5. Do I Want to Make Connections with New People?
Nextdoor is an excellent platform to build new relationships with potential customers. If your goal is to connect with a hyper-local audience, Nextdoor is one of the best tools available.
6. What Am I Hoping to Accomplish on Nextdoor?
Are you aiming for brand awareness, direct conversions, or community engagement? Clearly defining your goals will help you create ads that are aligned with your desired outcomes.
7. What Kind of Company Do I Want People to See Me As?
Think about how you want to position your business within the local community. Do you want to be seen as a helpful neighbor, a trusted expert, or a business that offers great deals? Your advertising content should reflect the image you want to project.
8. How Can I Create the Most Value on Nextdoor?
Providing value to your community can take many forms, from offering advice and recommendations to hosting events or providing exclusive deals. Think about how you can create value that encourages neighbors to engage with your brand.
9. How Many Ads Do I Want?
Be strategic with the number of ads you run. You don’t want to overwhelm your audience, but a consistent presence will help build familiarity. Consider a schedule that balances visibility with audience engagement.
By considering these factors, you can make a well-informed decision about whether Nextdoor advertising aligns with your business goals and how to maximize its potential.
Where Do I Start Nextdoor Advertising?
Once you’ve outlined your goals and the image you want to project, getting started on Nextdoor is straightforward. Signing up is free—all you need to do is create a Nextdoor business account online.
1. Sign Up
To get started, head to ads.nextdoor.com and select “Create a New Business” to sign up. Once your account is set up, you’ll manage your ads, audiences, and performance from the Nextdoor Ads Manager. The platform offers user-friendly features such as tracking, billing management, and user permissions.
2. Set Up Your Campaign
- Campaign Setup: Select your campaign’s objective (e.g., increase traffic, brand awareness).
- Ad Group Setup: Choose your ad placements, target audience, daily budget, and schedule.
- Ad Setup: Create your ad content, including visuals and copy for Newsfeed, For Sale & Free sections, or the Right Hand Rail for desktop users.
- Review and Publish: Review all details and make final updates before publishing your ad.
3. Payment and Business Settings
Payments are automatic, and you’ll be billed as you reach a billing threshold or on your monthly billing date. Business settings allow you to manage your team, update billing methods, and control user access.
4. Monitoring and Optimization
Your Dashboard gives a full overview of your ad performance. You can toggle ads on/off, monitor spend, and view metrics over any time frame. The Audience feature helps you optimize ads by targeting your customer base on Nextdoor.
5. Reporting
Access detailed performance reports for campaigns, ad groups, and ads through the reporting tool to ensure you’re meeting your goals.
The Reach of Nextdoor Advertising
One of the major benefits of Nextdoor advertising is its hyperlocal reach. With over 27 million active users across more than 268,000 neighborhoods in the U.S., Nextdoor gives businesses a unique chance to target specific geographic areas. This is especially beneficial for small businesses looking to attract customers within their immediate vicinity, such as restaurants, local shops, or service providers.
On Nextdoor, users actively seek recommendations and advice from their neighbors. This creates a powerful opportunity for businesses to build trust and credibility with their audience by being part of these conversations.
Targeted Advertising Capabilities
Nextdoor’s advertising tools offer powerful targeting options that allow businesses to focus their efforts on the most relevant audience. You can refine your target based on location, demographics, and even interests, ensuring your ads are seen by users most likely to engage with your business.
For instance, if you own a pet store, you can specifically target pet owners within your neighborhood. This precision targeting helps you maximize your return on investment by focusing your ads on people who are more likely to convert into customers.
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Why Use Nextdoor Advertising?
Is Nextdoor effective for advertising? Does it yield results? How much does it cost? Like many platforms, the answer is: “It depends.” As a growth marketing agency, we work with various partners across industries, and many have found success with Nextdoor advertising, while for others, it wasn’t the right fit. The key to figuring out whether Nextdoor is right for you lies in asking the right question, not “Should I use it?” but “Why should I use it?”
- Your Target Audience Is Already There: Nextdoor operates in 11 countries and connects 305,000 neighborhoods globally.
- Your Competitors Are Advertising There: If your competitors are leveraging Nextdoor, it’s a strong signal that you might benefit from establishing your presence too.
- Rising Costs of Facebook Ads: With increasing Facebook ad costs, branching out to a platform like Nextdoor could help optimize your budget and diversify your reach.
Each of these reasons stems from a clear “why.” Once you’ve identified why you want to advertise on Nextdoor, you can then determine if it aligns with your overall marketing strategy.
Can I Reach My Audience Using Nextdoor?
Absolutely. Nextdoor’s hyperlocal focus gives you a direct line to your local community. In fact, 88% of Nextdoor users frequent a local business at least once a week, and they make 90% of their purchases within 15 miles of their home or workplace.
Nextdoor isn’t just another social platform—it’s a tool specifically designed for fostering local connections. This makes it particularly valuable for businesses with a local presence, whether that’s a storefront or community-focused events.
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Targeting Options on Nextdoor Advertising
While Nextdoor’s targeting capabilities may not be as granular as platforms like Facebook, it still offers a range of valuable options to help you reach the right audience. By default, your ads will be shown to all users in your selected locations, but you can narrow this further based on specific criteria like:
- Location: Target users in specific neighborhoods, cities, or regions.
- Homeownership: Filter ads to reach homeowners if your product or service caters to them.
- Interests: Target users based on their interests and behaviors, although this is more limited than other platforms.
This level of targeting is particularly useful for businesses aiming to engage specific local audiences, ensuring that your ads are seen by people most likely to engage with your brand.
Are Nextdoor Ads Expensive?
Nextdoor ads are competitively priced compared to other paid social channels. The platform operates on an auction system, meaning you bid for ad placements based on the targeting criteria you set. You can choose between two bidding models:
- CPC (Cost per Click): You only pay when someone clicks on your ad.
- CPM (Cost per Mille): You pay per 1,000 impressions, whether or not users click.
The choice between these models affects your costs and how you’re charged. While it’s possible to run ads with small budgets, like most platforms, Nextdoor typically performs better with a larger budget, allowing the platform to optimize your ad delivery.
Creative Placements on Nextdoor
Nextdoor offers three main ad placements:
- Newsfeed: The most popular and effective placement, as it puts your ads in front of users where they spend the most time.
- For Sale and free: Within the scrolling feed of marketplace, where most neighbours go to buy, sell and they give any iteam locally.
- Right Rail: A sidebar placement best suited for brand awareness.
Most advertisers opt for the Newsfeed placement due to its effectiveness, but Finds and Right Rail can be useful depending on your objectives, particularly for building brand awareness.
Nextdoor advertising is a powerful tool for businesses aiming to reach their local community. Its hyperlocal targeting, combined with engaged users who actively support local businesses, makes it a platform worth considering. Whether you’re looking to drive traffic to a physical store, increase brand awareness, or engage with local customers, Nextdoor offers a cost-effective way to connect with an audience that values community and local businesses.
By understanding your “why” and aligning your campaign with Nextdoor’s unique capabilities, you can determine whether this platform is the right fit for your busines
How Can Nextdoor Help My Business?
You might be thinking, “I’m already managing Instagram, TikTok, Facebook, and X—why add another social media platform to the mix?” But here’s why establishing a presence on Nextdoor can offer unique benefits, especially if you value building strong local relationships:
- Increase Brand Awareness: By being present on a platform hyper-focused on neighborhoods, you can increase your visibility and build stronger customer relationships with locals who are most likely to visit your business.
- Lower Customer Acquisition Costs: Targeting individuals who live close to your brick-and-mortar store or local services can lead to more foot traffic, potentially lowering customer acquisition costs.
- Generate Referrals: Nextdoor is known for its word-of-mouth culture. Satisfied customers can easily recommend your business to neighbors, helping you generate organic growth through positive reviews and recommendations.
- Network Locally: Collaborate and connect with key community members like politicians, journalists, bloggers, and other local businesses, enhancing your credibility.
- Stay Up-to-Date: Nextdoor lets you stay in tune with local news and developments, which you can leverage for your marketing campaigns, promotions, or collaborations.
- Understand Customer Preferences: With the hyperlocal focus, you can better understand what local customers want and tailor your marketing efforts accordingly, leading to higher engagement.
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How to Create a Business Page on Nextdoor
To advertise on Nextdoor, you’ll first need a business page—similar to a Facebook or LinkedIn business profile. Here’s how to set one up:
Step 1: Create Your Business Page
If you already have a personal Nextdoor account, adding a business page is easy. Just click on your profile photo and select “Add Business Page.”
- You can manage your business page through your personal account or create a separate business account to keep things distinct.
- Don’t have a personal account? No problem—create a business account directly.
- You can claim up to 10 business pages per account, perfect for businesses with multiple locations.
Step 2: Provide Your Business Details
Nextdoor will ask for the following information:
- Business Name: As it should appear publicly.
- Business Address: This can be hidden if you prefer.
- Business Category: You can select multiple categories if your services vary.
- Logo/Profile Photo: This is optional but highly recommended to make your business stand out. Use a consistent logo across all your social platforms to build trust.
- Contact Information: Display your email, phone number, and website URL. Alternatively, you can choose to only be contactable through Nextdoor.
Once filled out, your page will be live and visible to your local community!
Step 3: Verify Your Business Page
Nextdoor may require verification depending on your type of business and location. This process ensures that your business information is accurate, giving potential customers confidence in your credibility.
- If verification is required, you’ll see a notification prompting you to verify through a phone call or text.
- You may need to upload proof of your business, such as a bank statement, utility bill, or business license.
- Ensure your documents clearly show your business name as listed on Nextdoor and are dated within 90 days.
Step 4: Optimize Your Business Page
Think of your Nextdoor business page as a landing page for your company. Keep it engaging, easy to navigate, and action-oriented. Include:
- Clear Descriptions: Explain what your business does and the value you provide.
- Call-to-Action: Make it easy for visitors to contact you or visit your store.
- Updated Information: Ensure all details, such as contact info and business hours, are accurate.
Key Tips for Optimizing your Nextdoor Business Page
- Include Essential Contact Information: Make sure to add your website, email address, and phone number so potential customers can easily reach you.
- List Your Business Hours: Clearly display your operating hours so people know when you’re available, ensuring they can plan visits or inquiries accordingly.
- Use Visuals to Stand Out: Upload a logo and cover photo for your page. Choose a cover photo that represents your business well—for example, if you own a restaurant, showcase your best dishes to entice potential customers.
- Share Your Business Story: In the “About” section, tell the story of your business. Highlight why you’re passionate about what you do and your connection to the local community. This personal touch helps build trust and rapport with prospective customers.
By following these tips, you’ll create a page that is both informative and engaging, driving more local interest in your business!
What Is Nextdoor Paid Advertising?
Nextdoor paid advertising allows you to promote your business directly to neighbors in your area. By paying for ads, your business appears in the feeds of people who live and work nearby, increasing visibility and driving local traffic.
Nextdoor offers Local Deal ads, perfect for highlighting special offers or discounts to your community. While this is especially useful for small businesses, even national brands have seen great success. For example, Hoover used Nextdoor Brand Advertising to target homeowners and encourage purchases from local retailers, doubling its return on ad spend.
What is the purpose of the Nextdoor app?
Nextdoor is the go-to neighborhood app that fosters community connection and collaboration. It’s a platform where local residents, businesses of all sizes, and public agencies can come together to discover, discuss, and act on what matters most in their neighborhood—whether it’s a small request or a larger community initiative.
How does Nextdoor make a profit?
Nextdoor primarily generates revenue through advertising. Similar to Facebook, Nextdoor offers businesses the ability to run targeted ads that users can engage with by liking, sharing, or commenting. Over the past year, Nextdoor has earned millions of dollars from its advertising services, making it a key source of the platform’s income.
Why is Nextdoor so popular?
Nextdoor is popular because it fosters a sense of community by helping neighbors connect, share important local information, and organize around neighborhood events or issues. Users value the platform’s ability to facilitate communication with nearby residents, making it easier to stay informed and engaged with their local area.
Final Words
Nextdoor advertising offers businesses a unique opportunity to connect with local communities, build trust, and increase brand visibility. With its hyperlocal targeting and active user base, it’s an excellent platform for small businesses looking to engage their neighbors and foster lasting relationships.
While costs are comparable to other social platforms, the ability to reach a more relevant and engaged audience makes it a valuable investment. We hope this guide has provided you with the insights needed to decide if Nextdoor advertising is right for your business. Partner with Ellington Technologies to maximize your Nextdoor strategy today!
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