The advertising industry is established and diverse in Israel. According to estimates, the revenue of the advertising sector in the country will reach about 2.36 billion dollars in 2027. In recent years, this industry is undergoing a significant change centered on a transition from advertising through traditional media channels to digital advertising. A mainly growing sector is social media advertising. Since social networks such as Instagram or Tik Tok have millions of users, advertising companies have begun to understand the significant business potential of advertising on these platforms. Projections showed that Ad spending in the social media advertising segment in Israel will amount to nearly 800 billion U.S. dollars in 2026.
The power of social media influencers
In the last few years, the phenomenon of influencers has developed. They could be models, musicians, chefs, comedians, or have expertise in a particular field. They usually advertise products or promote a specific agenda, often getting paid for it by companies. In 2027, the revenue of the influencer advertising industry in the country is expected to succeed at 61 million U.S. dollars, an increase of over 50 percent. As of July 2022, leading Instagram influencers in Israel included famous models such as Bar Refaeli and Neta Alchimister and singers like Anna Zak.
Social media is an efficient advertising tool
In the past, people were informed about new products mainly through television or the press. Nowadays, social networks are a significant source of advertising in Israel. A survey conducted in Israel in 2022 found that 48.8 percent of internet users use social networks as a tool for brand research. Social media constituted the second most popular channel for online brand research based on the respondents' answers. For instance, at the beginning of 2023, a TikTok trend of wrapping fruit roll ups over ice cream became viral. As a result, the product price in Israel increased, and there were shortages in some stores.
Revenue of the advertising industry in Israel 2017-2027
(in billion U.S dollars)
Data provided by Statista Market Insights are estimates. This includes the traditional advertising with non-digital revenues from tv, radio, out-of-home, and print advertising, digital advertising with online revenues from video, banner, audio (music streaming and podcast), classifieds, digital out-of-home, and search advertising, social media advertising includes all ad revenue generated by social networks or business networks, influencer advertising comprises all advertising fees paid directly to for posting or streaming sponsored content on social media. And excludes the direct and e-mail marketing, sponsorships/events and promotion, product placement, commission-based affiliate systems. All figures are estimates. A detailed methodology can be found in the Statista Advertising & Media Outlook.
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Statista. (May 4, 2023). Revenue of the advertising industry in Israel 2017-2027 (in billion U.S dollars) [Graph]. In Statista. Retrieved October 22, 2024, from https://www.statista.com/forecasts/1343445/advertising-market-revenue-israel
Statista. "Revenue of the advertising industry in Israel 2017-2027 (in billion U.S dollars)." Chart. May 4, 2023. Statista. Accessed October 22, 2024. https://www.statista.com/forecasts/1343445/advertising-market-revenue-israel
Statista. (2023). Revenue of the advertising industry in Israel 2017-2027 (in billion U.S dollars). Statista. Statista Inc.. Accessed: October 22, 2024. https://www.statista.com/forecasts/1343445/advertising-market-revenue-israel
Statista. "Revenue of The Advertising Industry in Israel 2017-2027 (in Billion U.S Dollars)." Statista, Statista Inc., 4 May 2023, https://www.statista.com/forecasts/1343445/advertising-market-revenue-israel
Statista, Revenue of the advertising industry in Israel 2017-2027 (in billion U.S dollars) Statista, https://www.statista.com/forecasts/1343445/advertising-market-revenue-israel (last visited October 22, 2024)
Revenue of the advertising industry in Israel 2017-2027 (in billion U.S dollars) [Graph], Statista, May 4, 2023. [Online]. Available: https://www.statista.com/forecasts/1343445/advertising-market-revenue-israel