Search Advertising - Israel

  • Israel
  • Ad spending in the Search Advertising market in Israel is forecasted to reach US$0.60bn in 2024.
  • The sector is expected to experience an annual growth rate (CAGR 2024-2029) of 8.69%, leading to an estimated market volume of US$0.91bn by 2029.
  • When compared on a global scale, the United States will contribute the most to ad spending, reaching US$132.70bn in 2024.
  • Within the Search Advertising market, 31.72% of total ad spending is projected to come from mobile sources in 2029.
  • The average ad spending per internet user in the Search Advertising market in Israel is estimated to be US$67.83 in 2024.
  • Israel's Search Advertising market is experiencing rapid growth due to increased digitalization and a tech-savvy population driving demand for online advertising services.

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

 
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Analyst Opinion

The Search Advertising market in Israel has been experiencing significant growth in recent years, driven by various factors such as increasing internet penetration, changing customer preferences, and the growing importance of digital advertising. Customer preferences in Israel have shifted towards online platforms, with a significant portion of the population now relying on the internet for information and entertainment. This has led to a rise in demand for search advertising, as businesses recognize the need to reach their target audience through online channels. Additionally, customers in Israel are increasingly using search engines as a primary source of information, making search advertising an effective way for businesses to connect with potential customers. One of the key trends in the Israeli Search Advertising market is the increasing adoption of mobile devices. With the widespread availability of smartphones and tablets, more and more people are accessing the internet on the go. This has created new opportunities for advertisers to reach customers through mobile search advertising. As a result, businesses are investing in mobile-friendly websites and optimizing their search advertising campaigns for mobile devices. Another trend in the market is the growing importance of data-driven advertising. Advertisers in Israel are leveraging data analytics to gain insights into customer behavior and preferences. This allows them to create targeted and personalized search advertising campaigns, increasing the effectiveness and efficiency of their marketing efforts. Data-driven advertising also enables businesses to measure the impact of their campaigns and make data-backed decisions to optimize their advertising strategies. Local special circumstances in Israel also contribute to the development of the Search Advertising market. Israel has a highly educated population with a strong technological background, which has fostered innovation and entrepreneurship in the digital advertising industry. This has led to the emergence of local search advertising agencies and startups, offering specialized services to businesses in Israel. Additionally, Israel's strong ties with the United States and Europe have facilitated collaboration and knowledge exchange in the digital advertising space, further fueling the growth of the market. Underlying macroeconomic factors also play a role in the development of the Search Advertising market in Israel. Israel has a thriving economy and a high GDP per capita, which provides businesses with the financial resources to invest in advertising. Furthermore, the government of Israel has been supportive of the digital advertising industry, implementing policies and initiatives to encourage innovation and growth. This favorable business environment has attracted both domestic and international advertisers to invest in search advertising in Israel. In conclusion, the Search Advertising market in Israel is experiencing growth due to increasing internet penetration, changing customer preferences, and the growing importance of digital advertising. The adoption of mobile devices, data-driven advertising, local special circumstances, and underlying macroeconomic factors all contribute to the development of the market. As businesses continue to recognize the effectiveness of search advertising in reaching their target audience, the market is expected to further expand in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

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.

Overview

  • Ad Spending
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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