Nextdoor is betting neighborly gossip can give it an advertising edge
Nextdoor says conversations among neighbors can give advertisers a view of local concerns that major online platforms may not offer. For example, an internet provider could tailor ads to areas focused on service problems or pricing.
CEO Nirav Tolia says the data may be especially useful to businesses such as dealerships, solar firms and restaurant chains, whose results can vary between locations. Advertisers could also find communities similar to places where their products already sell well.
The company has built a tool it calls a neighborhood graph. Tolia said businesses had repeatedly asked for it, though the article notes that its appeal could be limited if few advertisers use it regularly.
Other companies are also turning user activity into advertising insights. Uber and DoorDash have introduced tools based on aggregated information about travel, food orders and shopping.
Nextdoor earns most of its revenue from ads and has about 110 million users. In its latest quarter, which ended in June, revenue rose 15% to $75 million; the company is seeking to make its local data more valuable to advertisers.
Key points
- Nextdoor says neighborhood discussions can help marketers target ads to local needs.
- The tool may suit businesses whose sales vary across physical locations.
- Nextdoor reported $75 million in quarterly revenue, up 15%.