Is Nextdoor Advertising Worth It? Discover the Truth

Published by Staff on Feb 6, 2025 3:16:22 PM

Locations like Massage Magazine report that local advertising on Nextdoor can cost as little as $100 or less per month. A small business can leverage such a bargain to target nearby customers effectively. However, is Nextdoor advertising worth it for someone without a large business backing them?

Below, we explore whether the cost of Nextdoor advertising gives you the value it promises. Learn powerful insights to help you make informed marketing decisions and use Nextdoor to its highest potential. Finally, learn how Taradel can empower you to leverage Nextdoor advertising to get as much reach as possible.

Why Nextdoor Advertising Works for Local Businesses

Nextdoor focuses on neighborhoods, allowing businesses to communicate directly with customers in their immediate vicinity. This platform is thus empowered when it comes to local marketing, as it has an engaged audience that is invested in the success of local options and may prefer a more personal method of engagement.

At the same time, the Pew Research Center discovered that 5% of Americans get their news on Nextdoor, meaning that you can expect a good percentage of those in your local area to have access to what you say on the platform. You can use this and word-of-mouth to get information about your offering to others.

Similarly, many customers prefer to have reviews from members of their community or local area. As such, the hyperlocal nature of Nextdoor allows people to see comments from:

Peers
Neighbors
Colleagues
Businesses

These can offer insights regarding many of the people and businesses in their vicinity, helping to build a strong local presence for those with positive feedback.

Businesses can even directly engage with their customers with Nextdoor's accessible UI, allowing for open, honest interactions that promote further follow-ups and lead conversions.

Nextdoor's Partnerships for Improved Marketing

In 2024, Nextdoor partnered with Taradel to empower both businesses. Now, Taradel's marketing platform is more streamlined for Nextdoor users, allowing companies to leverage Taradel's marketing channels more efficiently.

Both companies work with local businesses to offer them the tools to thrive and grow in their communities. Whether a company wants to use alternatives to Nextdoor ads, such as direct mail, leverage digital ads, or use both, it can leverage Nextdoor's insights and targeting features alongside Taradel's reach and marketing prowess in its efforts.

Costs of Nextdoor Advertising for Small Businesses

Nextdoor ads operate on a cost-per-click (CPC) model, so a business only needs to pay for direct engagement. If a user does not click on the ad, then the ad will cycle around to a new user later.

When a user clicks on an advert, it directs them to a business' landing page, costing $2-$5 per click for local campaigns. However, the pricing varies based on elements such as:

Location
Competition
Target audience demographics
Target audience size

However, each click is a direct engagement that starts a user on the conversion funnel, making it suitable when you know users are likely to continue down this path.

Businesses can set daily or campaign budgets to limit the amount of promotion they engage in each day. As such, Nextdoor is perfect for small businesses who can only afford a smaller promotion cycle. The platform's hyperlocal and targeted reach may be all that is needed to start word-of-mouth campaigns and get a business off the ground.

Using the analytics tools available on Nextdoor's dashboard, you can calculate your potential ROI from each advertising campaign. This tool can help you determine whether each campaign is viable, allowing you to pivot to quickly ensure Nextdoor advertising effectiveness.

If you want to ensure that you get the best value for money, consider changing your campaign to:

Only target specific relevant neighborhoods
Focus on those most likely to convert
Create more hyperfocused campaigns
Combine with other marketing efforts for greater reach

You can then analyze your budget and ROI, continually determining which campaigns offer the greatest returns and iterating on them.

Nextdoor Advertising Benefits for Local Businesses

Nextdoor actively tries to help businesses be a big part of their local community. The intent is that they help companies build more authentic connections with others in their area, and a big part of that is helping them build trust and credibility through recommendations and reviews.

The platform helps this further with features such as local deals and sponsored content that can attract more engaged users.

Building Trust from the Local Community

Nextdoor users tend to rely on community recommendations when making purchasing decisions because they feel that Nextdoor users are their peers. However, sponsored posts can often blend seamlessly into other local discussions. These can promote things like:

Positive reviews
Promotions and previews
Upcoming events
Testimonials and recommendations

Using these spaces to promote yourself, combined with Nextdoor CPC ads, can create a holistic promotional space where people see more of your brand, building its visibility. By leveraging hyperlocal advertising in this manner, you will stay at the forefront of local Nextdoor users' minds. As such, when they or a peer need a service or product you can offer, they will be more likely to turn to you.

Maximizing ROI to Ensure the Worth of Nextdoor Ads

As you develop CPC ads for Nextdoor, focus on the local culture, if possible. Use aspects that resonate with others in your area, such as:

Local language
Imagery from the area
Commonly-understood in-jokes
Popular myth or legend
Advice specifically related to the local culture

You can then create a call to action that offers a straightforward way to overcome local pain points.