At Nextdoor, we pride ourselves on delivering ads that our users not only find relevant but also trustworthy. In fact, an internal Nextdoor study from 2024 revealed that users are 2.4 times more likely to perceive ads on Nextdoor as trustworthy compared to other platforms, and 21% more likely to consider them relevant.
However, even the best targeting won’t matter if the ad isn’t engaging. To truly capture attention and drive interaction, an ad must feature compelling messaging and be visually appealing. To help advertisers create more impactful campaigns on Nextdoor, we conducted a comprehensive study to identify the creative elements that most influence Click-Through Rates (CTR).
Our analysis revealed that incorporating location-specific personalization into the creative’s copy increases CTR by 17%, when all other factors are held constant. This finding underscores the importance of connecting with Nextdoor’s verified, community-centric audience. Including local references, such as mentioning the city or neighborhood in the headline, makes your ad feel more relevant, authentic, and personal.
However, neighborhood names can be lengthy, and eat into the 70-character limit for headlines. We recommend using the city name, as we found no significant difference in CTR between city and neighborhood mentions.
Less really is more. Advertisements where less than 25% of the creative is covered by text achieve a 10% higher CTR compared to those with heavier text overlays. Excessive text can overwhelm and detract from the visual appeal. Use the headline and body copy to communicate your key message, allowing the image to remain clean and inviting. If text within the image is necessary, keep it concise and unobtrusive, avoiding large fonts that dominate the space.
Advertisements featuring real, authentic images—such as photos of actual people, places, or products—outperform those with computer-generated or overly stylized images. We found that ads which utilize real imagery see a 10% higher CTR. This preference for authenticity highlights how much Nextdoor neighbors value content that reflects their everyday lives and feels native to their feed. To maximize impact, ensure your imagery is relatable and genuine, resonating with the community feel of the platform.
While brand logos can enhance brand awareness, our research indicates that advertisements without logos can achieve a 22% higher CTR. This doesn’t mean you should eliminate logos entirely, but rather consider the specific goals of your campaign. Ads that emphasize the practical benefits of a product or service tend to resonate more with Nextdoor’s audience than those that focus on branding. If your objective is direct response, consider leading with the value you offer. For campaigns centered on brand awareness, including the logo may be more appropriate.
To ensure robust and reliable insights, we analyzed a diverse sample of newsfeed display advertisements that ran on Nextdoor in 2023, each generating over 10,000 impressions. The sample was carefully selected to ensure a balanced representation across various industries, including retail, finance, technology, and more. Using ChatGPT, we were able to label each image based on the attributes shown below:
We then analyzed the data using an Ordinary Least Squares (OLS) regression, a method that allowed us to quantify the influence of each attribute on CTR while controlling the effects of other factors. This approach helped isolate the individual impact of each attribute, ensuring that the relationships we observed were not confounded by the presence of other influencing factors. For instance, certain verticals tend to have higher CTRs, not because their ads are inherently better, but due to the nature of their industry. Therefore, it was essential to account for these differences in our analysis.
While these best practices provide a solid foundation for improving your ads effectiveness on Nextdoor, it’s important to remember that they are based on aggregated data and trends. The true effectiveness of an ad depends on a multitude of factors, including delivery and targeting, which were not covered in this study.
We strongly encourage advertisers to collaborate with their Nextdoor partners to continuously test different versions of their creatives. By experimenting with various approaches, you can discover what works best for your brand and audience, ultimately driving higher engagement and better results.