Blog Post

How to Advertise on Nextdoor

by: Power Digital April 1, 2021

Table of Contents

Nextdoor is a community-based social media advertising platform that connects neighbors to each other and to local businesses, services, news updates, recommendations, and items for sale.¹

Think of it as Facebook for your local neighborhood.

Thanks to its hyperlocal focus, Nextdoor users rely on the platform to discover small businesses and service providers. That means Nextdoor ads are a dream come true for many SMBs.

If you’re wondering how to advertise on Nextdoor as a small business, look no further. We’ll explain how to set up your business profile, the different types of Nextdoor ads, paid Nextdoor advertising vs free Nextdoor advertising, best practices for posting content, and more.

Why Advertise on Nextdoor?

The Nextdoor platform launched in the United States in 2011 and began a global expansion in 2016.²

As people spend more time online, the Yellow Pages have become a thing of the past, opening the door for Facebook, Yelp, and Nextdoor to vie for a spot as the best way to connect with local businesses.

In this race, Nextdoor has made strides:

As of 2019, Nextdoor had 27 million active monthly users and 236,000 neighborhoods.³
The COVID-19 pandemic highlighted the benefits of Nextdoor as neighbors used the platform to help each other get groceries and advocate for struggling local businesses.⁴
Unlike larger and broader platforms like Facebook, Twitter, and Instagram, Nextdoor is entirely local. Users will never see news or updates from businesses in far-flung cities or states.
Nextdoor boasts that one in four U.S. households use their platform. On it, users have made 52 million local business recommendations.⁵

When businesses advertise on Nextdoor, they know their ads will reach local customers and users who are just a short drive away from their business. Likewise, participating in conversations in Nextdoor can help to build word-of-mouth referrals.

Next, we’ll go over the ways a small business can set themselves apart from their competitors, especially national brands, by promoting their brand identity and core values.

Getting Started on Nextdoor

Local business owners, casual service providers, and home service providers can all use Nextdoor. Even babysitters or dog walkers can create a page if they have the proper documentation.

To start appearing in neighborhood search results, create your business profile. This page will display all the basic information your neighbors need to know about your business or service, including:

Location
Website
Hours
History
Services
Any pictures you upload

When you’re logged in, you’ll be able to see recommendations for your business created by loyal customers. You can also utilize a variety of paid and free Nextdoor advertising options.⁶

Once you have one recommendation, customers will be able to find your business profile when they search for goods, services, or recommendations.

Nextdoor Advertising

Nextdoor ads differ based on the nature of your business.

Brick and mortar stores like restaurants and casual service providers can advertise by purchasing Local Deals or posting up to twice a month for free.
Professional home service providers like real estate agents and home renovation experts can advertise by purchasing Neighborhood Sponsorships, purchasing Local Deals, or posting up to twice a month for free.⁷

Next, we’ll explore each of the advertising channels on Nextdoor in more detail.

Local Deals

With Local Deals, businesses can share discounts and promotions directly with their neighbors. Deals appear under their own tab directly to the left of the newsfeed.

You can post a Local Deal for as little as $1, making this a great option for any budget.⁸

To post your first ad:

Select which neighborhoods you want to reach
Build your ad using Nextdoor’s tools
Use the website’s Insights Dashboard to view your ad’s performance

Take advantage of Nextdoor’s analytics tools to further customize your Local Deal and improve your ROI.

Benefits of Local Deals

Drive foot traffic
Generate quality leads
Increase sales
Encourage word of mouth referrals⁹

Neighborhood Sponsorships

As noted, home service providers have a second paid advertising option: Neighborhood Sponsorships.

This feature allows you to create ads that appear next to the Nextdoor newsfeed in targeted ZIP codes.¹⁰

Neighborhood Sponsorships help keep your products or services at the forefront of customers’ minds. They can take the form of:

Messages to the community
Promoted events
Ads for special discounts

Effective Neighborhood Sponsorships can help you become a leading voice and trusted brand in your community.

Benefits

Secure your position as a neighborhood expert in your field
Communicate with future customers
Increase brand awareness

Free Business Posting

If you’re a newer company or your social budget is on the smaller side, take advantage of Nextdoor’s free posting for business.

Nextdoor operates as a community message board where individuals can contribute freely. Use your business profile to create posts and join in on conversations.

Trying reaching out to your neighbors by:

Telling your business’s story – People frequently introduce themselves to the community when they join Nextdoor. Do the same, using the opportunity to introduce your unique story and brand voice.
Asking questions – If you’re considering adding new goods or services, running a promotion, or changing your hours, reach out to your neighbors!

Neighbors can react, reply, and direct message you.

Benefits:

Grab the attention of potential customers
Share important updates with your community
Engage with your local neighborhood¹¹

Soliciting Recommendations

While your business can only post twice per month, individual users can post freely.

Asking happy customers to recommend your business on Nextdoor is always a good idea. You could even run a promotion, letting current customers know that they’ll receive a discount for their next service after posting a favorable review.

But avoid the temptation to create or solicit any posts that violate Nextdoor’s community guidelines.

Nextdoor expects that:

Users disclose any financial interest related to a business they recommend
Users disclose their relationship if they recommend a friend or family’s business
Users do not recommend a business or service if they have been paid to do so
Users do not negatively comment on a business if they have a conflict of interest¹³

Nextdoor’s commitment to building a trustworthy and transparent community will actually help your marketing efforts. Your neighbors will be more likely to trust your product or service knowing that Nextdoor upholds such high standards.

Nextdoor Advertising Best Practices

Since businesses on Nextdoor only have two free posts a month, you’ll want to optimize these posts to reach the widest reach and generate new leads.

The types of posts that receive the most engagement are:

Community-focused
Kind
Informative

Explicitly commercial posts tend to have less engagement.

Don’t think of these posts as ads. Instead, use them as an opportunity to engage authentically with your neighborhood and develop an enduring sense of community.

Each time you post, share something new to keep customers engaged.
Do your best to personalize your post by introducing yourself and your employees.
Use photos and graphics from your social media campaigns. They bring your post to life and will attract the attention of your neighbors as they scroll through their newsfeed.

Is Nextdoor Advertising Right For Your Business?

Because of the opportunities to organically generate new leads and build community engagement, every local business should create a business profile on Nextdoor and take advantage of the two free posts per month.

If you have the budget, Local Deals or Neighborhood Sponsorships can be a great investment. Remember, Nextdoor ads are highly targeted to your surrounding neighborhoods, so define your target audience and create a strategy for these paid social posts.

At PDM we’re experts in Nextdoor advertising as part of a holistic marketing strategy.

While creating specific content for Nextdoor can take time and resources, we can formulate a plan for reusing content from other campaigns while tracking your ROI on Nextdoor. Get in touch today to learn more about this advertising on this growing social network as well as nextdoor advertising cost.