Market Insights Advertising & Media AR & VR

VR Advertising - Israel

Israel

The VR Advertising market in Israel is projected to reach a revenue of US$0.8m by 2024.
This market segment is expected to exhibit an annual growth rate (CAGR 2024-2028) of 1.53%, leading to a projected market volume of US$0.8m by 2028.
It is worth noting that in the United States generates the majority of the revenue in this market, with a projected market volume of US$47.4m in 2024.
Israel is emerging as a leading innovator in VR advertising, leveraging its strong tech ecosystem and entrepreneurial spirit.

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Analyst Opinion

The VR Advertising market in Israel is experiencing significant growth and development.

Customer preferences: Customers in Israel are increasingly embracing virtual reality (VR) technology, leading to a growing demand for VR advertising. VR offers a unique and immersive experience that captures the attention of consumers and allows them to engage with brands in a more interactive way. This appeals to tech-savvy Israeli consumers who are always looking for new and innovative experiences.

Trends in the market: One of the key trends in the VR Advertising market in Israel is the integration of VR technology into various industries. Companies in sectors such as real estate, tourism, and entertainment are leveraging VR to showcase their products and services in a more compelling manner. For example, real estate developers are using VR to offer virtual property tours, allowing potential buyers to explore properties without physically visiting them. This trend is driven by the desire to provide customers with a more immersive and realistic experience, which ultimately leads to increased sales and customer satisfaction. Another trend in the market is the use of VR in event marketing. With the rise of virtual events and conferences, companies are utilizing VR to create virtual booths and interactive experiences for attendees. This allows brands to reach a wider audience and engage with potential customers in a more meaningful way. Additionally, VR advertising can provide valuable data and insights about consumer behavior and preferences, enabling companies to tailor their marketing strategies accordingly.

Local special circumstances: Israel is known for its thriving tech industry and entrepreneurial spirit, which creates a conducive environment for the development of VR advertising. The country is home to numerous startups and tech companies that are at the forefront of VR innovation. This ecosystem fosters collaboration and knowledge sharing, driving advancements in VR technology and its applications in advertising. Furthermore, Israel has a highly educated and tech-savvy population, which further fuels the demand for VR advertising. The country's strong emphasis on education and research has resulted in a skilled workforce that is well-equipped to embrace new technologies and drive their adoption in various industries.

Underlying macroeconomic factors: Israel's strong economy and high disposable income levels contribute to the growth of the VR Advertising market. As consumers have more purchasing power, they are more likely to invest in VR devices and engage with VR advertising. Additionally, Israel's strategic location and close ties with global markets make it an attractive destination for international companies looking to enter the VR Advertising market. In conclusion, the VR Advertising market in Israel is experiencing significant growth and development due to customer preferences for immersive experiences, the integration of VR technology into various industries, the country's thriving tech industry, and its strong economy. As VR continues to evolve and become more accessible, the market is expected to further expand, providing new opportunities for businesses and advertisers.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports 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 consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. 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).