In one embodiment, a cloud-based service instructs one or more networking devices in a local area network (LAN) to form a virtual network overlay in the LAN that redirects traffic associated with a particular node in the LAN to the service. The service receives multicast or broadcast traffic sent by the particular node in the LAN and redirected to the service via the virtual network overlay. The service identifies a group of nodes in the network that are to receive the traffic sent by the particular node, based in part by profiling the traffic associated with the particular node. The service sends the traffic sent by the particular node to at least one networking device in the LAN with an indication of the identified group of nodes in the network that are to receive the traffic sent by the particular node. The at least one networking device forwards the traffic sent by the particular node to the nodes in the identified group.