Advertising - Israel

Israel

Ad spending in the Advertising market in Israel is forecasted to reach US$2,261.00m in 2024.
The largest market is Search Advertising with a market volume of US$600.60m in 2024.
When compared globally, the United States will lead in ad spending with US$422.30bn in 2024.
Within the Advertising market, 75.81% of total ad spending will come from digital advertising in 2029.
The average ad spending per capita in the Search Advertising market is expected to be US$64.50 in 2024.
Moreover, Advertising market of the 78.81% revenue in Israel will be generated through programmatic advertising in 2029.
In Israel, the advertising market is witnessing a shift towards digital platforms, with a growing focus on targeted online campaigns for optimal reach and engagement.

Key regions: United States, China, Europe, Asia, Japan

Market

Region

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Currency

Analyst Opinion

The Advertising market in Israel has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Israel, customers have shown a growing preference for digital advertising channels, such as social media, search engines, and mobile apps. This shift can be attributed to the increasing use of smartphones and the internet among the population. Customers are also becoming more discerning in their choices and are seeking personalized and targeted advertising messages that resonate with their interests and values.

Trends in the market: One of the key trends in the Israeli advertising market is the rise of influencer marketing. Influencers, particularly in the fashion, beauty, and lifestyle sectors, have gained significant popularity and have become powerful marketing tools for brands. This trend is fueled by the strong presence of social media platforms in Israel, where influencers can reach a large audience and engage with them on a personal level. Another trend in the market is the growing demand for programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making it more efficient and cost-effective. This trend is driven by the increasing availability of data and advanced targeting capabilities, which enable advertisers to reach the right audience at the right time with highly relevant ads.

Local special circumstances: Israel has a vibrant startup ecosystem, with a high concentration of technology companies and innovation hubs. This has created a favorable environment for the development of advertising technology (adtech) startups, which are driving innovation in the industry. These startups are introducing new tools and solutions that help advertisers optimize their campaigns, measure their impact, and improve their return on investment.

Underlying macroeconomic factors: Israel has a strong and stable economy, which provides a solid foundation for the advertising market. The country has a high GDP per capita and a well-educated workforce, which contributes to high consumer spending and a favorable business environment. Additionally, Israel has a highly developed infrastructure, including advanced telecommunications networks and internet connectivity, which supports the growth of digital advertising. In conclusion, the Advertising market in Israel is evolving to meet the changing needs and preferences of customers. The rise of digital advertising channels, influencer marketing, and programmatic advertising are key trends shaping the market. The local special circumstances, such as the presence of adtech startups and a strong economy, further contribute to the growth and development of the advertising industry in Israel.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).