Nextdoor has launched AI-powered click optimisation to strengthen hyperlocal advertising for brands across the United Kingdom. The new capability helps advertisers increase engagement and maximise returns from local digital campaigns. The company designed AI-powered click optimisation to help brands improve performance in hyperlocal advertising campaigns. The technology analyses campaign data and automatically optimises ad delivery for higher engagement.
During beta testing, advertisers achieved significant improvements using AI-powered click optimisation. For instance, campaigns delivered a median 75% increase in click-through rates (CTR) compared with traditional CPM bidding. Consequently, advertisers nearly doubled their engagement levels. Advertisers also reported a sharp drop in campaign costs. In fact, cost-per-click decreased by a median of 75% during testing. As a result, brands generated four times more clicks using the same marketing budget.
Nextdoor Expands Smart Advertising Capabilities
The launch also expands the smart advertising ecosystem from Nextdoor’s unified Ads Manager platform. The company introduced the proprietary Ads Manager in the UK during the third quarter of 2025. The platform offers support for managed and self-service campaigns with a unified interface. In addition, the platform offers advertisers advanced targeting capabilities and increased control. However, the click optimisation using AI improves the platform in the following way: the platform makes use of machine learning that is able to identify valuable audiences and optimize the ads. Consequently, the advertisers get to enjoy the benefits from the campaign results and the engagement from the local communities.
On the other hand, the users in the neighbourhood get to enjoy the benefits from the ads that are relevant to their interests and needs. The ads that the platform displays are those that are of interest to the local communities around the area.Hyperlocal Advertising Gains Momentum. Nextdoor continues to expand its role in hyperlocal advertising. The platform currently serves more than 10 million verified neighbours and reaches one in four UK households. This strong local network helps brands connect with trusted community members. As a result, advertisers reach high-intent audiences and drive meaningful engagement. Additionally, the platform facilitates the conversion of local relevance into business results.
Other Advertising Features to Achieve Better Campaign Outcomes
Besides the AI click optimisation, the company has rolled out several new advertising features. Max Impression Optimisation is another feature that aids advertisers in maximising the reach of the campaign. The tool facilitates the delivery of the maximum number of impressions to the targeted audience. Expanding Video Formats is another feature that aids advertisers in achieving better storytelling. Additionally, the company is still in the pilot phase with its AI advertising tools, which assist advertisers in optimising targeting, delivery, copywriting, and creative development. The AI system also generates ad copy and images.It uses ChatGPT technology and over three million commercial-licensed photos from Pexels. Therefore, advertisers can create high-quality campaigns faster and more efficiently.
Gareth Walton, Head of EMEA Sales at Nextdoor, commented,
“Nextdoor’s new machine learning Click Optimisation is a game-changer for advertisers, enabling them to achieve more impactful results with their marketing spend. It ensures that budgets go further, whether the goal is reach, clicks, or conversion.
“What distinguishes Nextdoor from other social media platforms is our unique focus on verified neighbours and targeted advertising at the neighbourhood level. This precision and local engagement offer a compelling alternative to other platforms, delivering strong performance at scale. Brands can connect directly with household decision-makers, offering precision and efficiency for those aiming to engage locally at scale.”
Andrew Miller, AI & Emerging Tech Lead at Verisure said,
“Verisure prioritises reaching the right audience with precision. With Nextdoor’s new click optimisation, we’ve seen a transformation in our campaign performance. The AI-powered tools have significantly boosted our click-through rates and overall engagement, allowing us to connect with local communities more effectively. This innovation has made significant improvements to our cost per lead and ROI, delivering impressive results and reinforcing Verisure’s commitment to excellence.”
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News Source: Businesswire.com
