Market Insights Advertising & Media Advertising Out-of-Home Advertising

Traditional Out-of-Home Advertising - Israel

Israel

Ad spending in Israel's Traditional Out-of-Home Advertising market is forecasted to hit US$37.67m in 2024.
The sector is anticipated to display an annual growth rate (CAGR 2024-2029) of 1.27%, leading to a projected market volume of US$40.12m by 2029.
The average ad spending per capita in Israel's Traditional Out-of-Home Advertising market is projected to reach US$4.05 in 2024.
Traditional Out-of-Home Advertising in Israel is embracing digital transformation, integrating interactive technologies to enhance consumer engagement and drive campaign effectiveness.

Key regions: France, United Kingdom, Asia, China, Germany

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Analyst Opinion

Traditional Out-of-Home Advertising in Israel has experienced significant growth and development in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: In Israel, customers have shown a strong preference for traditional out-of-home advertising methods, such as billboards, posters, and transit advertising. This is primarily due to the high visibility and reach of these advertising formats, which allow brands to effectively target a wide audience. Additionally, customers appreciate the non-intrusive nature of traditional out-of-home advertising, as it does not interrupt their daily activities like other forms of advertising, such as online pop-up ads or television commercials.

Trends in the market: One of the key trends in the traditional out-of-home advertising market in Israel is the increasing use of digital technology. Digital billboards and screens have become more prevalent, offering advertisers greater flexibility and creativity in their campaigns. These digital displays allow for dynamic and interactive content, capturing the attention of passersby and enhancing brand engagement. Moreover, digital technology enables real-time content updates, allowing advertisers to tailor their messages based on specific locations, times, or events. Another trend in the market is the integration of traditional out-of-home advertising with mobile devices. Advertisers are leveraging technologies such as QR codes and NFC (near field communication) to bridge the gap between offline and online advertising. By incorporating these elements into their campaigns, brands can provide consumers with a seamless transition from outdoor advertisements to digital content, such as websites or social media platforms. This integration not only enhances brand visibility but also enables direct engagement and interaction with customers.

Local special circumstances: Israel's unique geographic and cultural landscape presents special circumstances for the traditional out-of-home advertising market. With a high population density and vibrant urban centers, there are ample opportunities for advertisers to reach a large audience through strategically placed billboards and posters. Additionally, Israel's diverse population, consisting of different ethnic and religious groups, requires advertisers to consider cultural sensitivities and tailor their messages accordingly. This localized approach ensures that advertisements resonate with the target audience and effectively communicate the brand's message.

Underlying macroeconomic factors: The growth of the traditional out-of-home advertising market in Israel can be attributed to several underlying macroeconomic factors. Israel has a strong and stable economy, which has fueled consumer spending and increased advertising budgets. This economic stability has provided advertisers with the confidence to invest in traditional out-of-home advertising as a reliable and effective marketing channel. Furthermore, Israel's robust tourism industry has also contributed to the growth of the market, as advertisers target both domestic and international visitors through outdoor advertising campaigns. In conclusion, the traditional out-of-home advertising market in Israel is experiencing growth and development due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Advertisers are leveraging digital technology and integrating offline and online advertising to enhance brand visibility and engagement. With Israel's unique geographic and cultural landscape, traditional out-of-home advertising continues to be a preferred marketing channel for reaching a wide audience and effectively communicating brand messages.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. 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) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.