AdExchanger Podcast Summary: “What’s Next, With Nextdoor CEO Nirav Tolia”

Podcast Information:

• Title: AdExchanger
• Host/Author: AdExchanger Talks
• Episode: What’s Next, With Nextdoor CEO Nirav Tolia
• Release Date: November 20, 2024

1. Introduction

In this episode of AdExchanger Talks, host Alison Schiff engages in an in-depth conversation with Nirav Tolia, the CEO and co-founder of Nextdoor. The discussion delves into Nextdoor’s advertising strategies, growth ambitions, community management, and future transformation initiatives. The episode is enriched with personal anecdotes, industry insights, and forward-looking statements about the intersection of technology and local communities.

2. Nirav Tolia’s Personal Background and Early Career

Nirav begins by sharing a lesser-known aspect of his life—his time as a member of the Stanford Fleet Street Singers, an all-male collegiate a cappella group during his undergraduate years at Stanford. He recounts how this experience not only provided cherished memories but also led to a significant connection with David Wiesen, a future co-founder of Nextdoor.

Nirav Tolia [05:31]: “I was in one of those collegiate a cappella groups. It was something that I enjoyed and took very seriously. It ultimately yielded not just great memories at college, but one of my Nextdoor co-founders.”

3. Founding and Evolution of Nextdoor

Nextdoor was born out of Nirav’s desire to build a community-centric online platform that bridges virtual interactions with real-world neighborhood connections. Initially launched in 2010, Nextdoor aimed to become an indispensable local internet service fostering stronger, safer, and happier communities.

Nirav Tolia [11:28]: “From the very beginning, the vision for Nextdoor was to build an indispensable local Internet service and use technology to help create stronger, safer, and happier places to call home.”

He highlights that while the core mission remains unchanged, Nextdoor is evolving to adapt to changes in the world, such as the impact of COVID-19 and the shift towards remote work.

4. Nextdoor’s Advertising Platform

a. Ad Offerings

Nextdoor offers a comprehensive advertising stack that includes Ads Manager (a self-serve platform), Creative Builder, targeting capabilities, conversion tracking, and an Ads API program tailored for businesses and agency partners.

Alison Schiff [38:19]: “There’s the Ads Manager, it’s a self-serve ad platform. There’s a creative builder. There’s targeting... conversion tracking... and then there’s an ads API program.”

b. User Demographics and Targeting

With nearly 100 million verified neighbors, Nextdoor’s user base is highly localized, making it attractive for advertisers targeting specific neighborhoods, ZIP codes, or DMAs. The platform excels in reaching small and medium-sized businesses (SMBs), mid-market, and enterprise advertisers.

Nirav Tolia [16:04]: “Local is something that typically is not easy for big advertisers or small advertisers to scale. And the value of Nextdoor... is you can do local but at scale. And that’s very unique in the world today.”

c. Privacy and Data Usage

Nextdoor emphasizes user privacy by allowing advertisers to target based on location parameters without delving into personally identifiable information. Users can opt-out of personalized ads, ensuring a balance between effective targeting and privacy.

Nirav Tolia [45:30]: “First, you always have to give your user the opportunity to opt out... Location is a real superpower when you’re thinking about targeting because you can infer so much more without prying into people’s personal lives.”

5. Community Moderation and Maintaining Civility

Maintaining a civil and positive environment on Nextdoor is paramount. Nirav discusses the challenges of moderating user behavior and the strategies employed to encourage constructive interactions. Tools like the "Kindness Reminder," powered by AI, prompt users to refine antagonistic posts before publishing.

Nirav Tolia [21:58]: “We have to remind users that when you’re emotional, that’s not the best time to engage in an online conversation... We want to encourage productive interactions.”

He acknowledges that despite these measures, a small percentage of harmful content persists but remains committed to minimizing it.

6. Transformation Initiative: Next

Nirav introduces “Next,” an ambitious project aimed at transforming Nextdoor from an intent-centric platform to a daily indispensable tool for local discovery. This involves incorporating features akin to a local newspaper, providing users with daily updates on weather, traffic, local news, and more.

Nirav Tolia [50:03]: “Transformation is about delivering more value to our user base... We want Nextdoor to be one of those places you go to discover on a daily basis if there’s a thunderstorm, new local businesses, or community events.”

7. Role of AI in Nextdoor’s Future

Artificial Intelligence (AI) is pivotal to the Next transformation. Nirav explains how AI will synthesize diverse information sources to provide coherent, relevant updates to users, enhancing the platform’s utility without overwhelming them.

Nirav Tolia [54:18]: “AI can take lots of disparate sources of information, braid them together, summarize them, and present them in a coherent way... AI will give much more focus and simplicity to all the disparate information that exists locally.”

8. Nirav’s Participation in Shark Tank

Nirav shares his experience as a guest shark on Shark Tank, highlighting his passion for supporting fellow entrepreneurs. He emphasizes the emotional connection and understanding he has with pitching entrepreneurs, having been in their shoes himself.

Nirav Tolia [30:47]: “I love supporting entrepreneurs... Shark Tank is one of the best examples of the American dream.”

9. Revenue and Future Growth

While Nextdoor reported $66 million in revenue for Q3, a 17% year-over-year increase, Nirav addresses past projections and outlines the path to achieving a $1 billion business. The focus remains on enhancing user value, which in turn drives advertiser value and revenue growth.

Nirav Tolia [56:18]: “We need to deliver more value to our users. By delivering more value to our users, we’ll deliver more value to our advertisers. And if we deliver more value to our advertisers, that revenue number will go up.”

10. Conclusion

The episode concludes with Nirav sharing a personal interaction on Nextdoor that underscores the platform’s impact on local communities. He reiterates his commitment to evolving Nextdoor to better serve both users and advertisers through innovative use of technology and community-focused initiatives.

Nirav Tolia [57:17]: “I read about one of my favorite restaurants on Nextdoor and how they were designing a kids’ menu... It was amazing how the neighbors were excited and talking about how beloved the restaurant is in the neighborhood.”

Notable Quotes:

• Nirav Tolia [05:31]: “I was in one of those collegiate a cappella groups... it ultimately yielded not just great memories at college, but one of my Nextdoor co-founders.”

• Nirav Tolia [16:04]: “Local is something that typically is not easy for big advertisers or small advertisers to scale... you can do local but at scale.”

• Nirav Tolia [21:58]: “We have to remind users that when you’re emotional, that’s not the best time to engage in an online conversation.”

• Nirav Tolia [45:30]: “Location is a real superpower when you’re thinking about targeting because you can infer so much more without prying into people’s personal lives.”

• Nirav Tolia [54:18]: “AI can take lots of disparate sources of information, braid them together, summarize them, and present them in a coherent way.”

• Nirav Tolia [56:18]: “We need to deliver more value to our users. By delivering more value to our users, we’ll deliver more value to our advertisers.”

This episode provides a comprehensive look into Nextdoor’s strategic direction, highlighting Nirav Tolia’s vision for enhancing local community connections through advanced technology and thoughtful advertising solutions. Listeners gain valuable insights into balancing user experience with monetization, the importance of maintaining community standards, and the future trajectory of Nextdoor as it seeks to become an everyday tool for neighborhood engagement.