Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Israel

Israel

Ad spending in the Traditional TV Advertising market in Israel is forecasted to reach US$253.20m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.64%, leading to a projected market volume of US$261.40m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Israel is expected to be US$22.68 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Israel is projected to reach 11.9m users.
Amid the rise of digital platforms, Israel's Traditional TV Advertising market shows resilience by targeting niche audiences with tailored content.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

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

Customer preferences: Israeli consumers still have a strong preference for traditional TV advertising, despite the rise of digital platforms. This can be attributed to the fact that television remains the most popular form of media consumption in the country, with a large portion of the population regularly tuning in to watch their favorite shows and programs. Additionally, many viewers find traditional TV advertising to be more engaging and memorable compared to digital ads, which can be easily skipped or ignored.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Israel is the increasing demand for targeted advertising. Advertisers are now leveraging data analytics and audience segmentation techniques to deliver more personalized and relevant ads to viewers. This not only allows advertisers to maximize the effectiveness of their campaigns but also improves the overall viewing experience for consumers. Another trend in the market is the growth of programmatic advertising. Programmatic advertising refers to the use of automated systems to buy and sell ad inventory in real-time. This allows advertisers to reach their target audience more efficiently and effectively, while also providing them with greater control over their advertising budgets.

Local special circumstances: Israel has a highly competitive media landscape, with a wide range of television channels catering to different demographics and interests. This provides advertisers with a diverse range of options to reach their target audience. Additionally, the Israeli government heavily regulates the advertising industry, ensuring that advertisements meet certain standards and do not mislead or deceive consumers.

Underlying macroeconomic factors: The strong performance of the Israeli economy has also contributed to the growth of the Traditional TV Advertising market. Israel has a high GDP per capita and a relatively low unemployment rate, which means that consumers have more disposable income to spend on products and services. This has attracted advertisers to invest in television advertising as a way to reach this affluent consumer base. In conclusion, the Traditional TV Advertising market in Israel is growing due to customer preferences for traditional TV viewing, the increasing demand for targeted and programmatic advertising, the competitive media landscape, and the strong macroeconomic factors in the country. Advertisers continue to see value in traditional TV advertising as a way to engage with consumers and drive sales.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

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 Global Survey) 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, media consumption, number of households with television, and consumer spending.

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.