Israel flag Israel: Buying and Selling

Advertising and marketing in Israel

Marketing opportunities

Consumer Profile
There are around 8,914,885 people living in Israel. 74% are Jewish (of which Israel-born Sabras 78.7%; Europe/America/Oceania-born 14.8%; Africa-born 4.2%; Asia-born 2.3%), and 21.1% are Arabs (CIA). The density of population is 426 inhabitants/km² (World Bank). 92.8% of Israelis live in cities, with an average annual rate of urbanization of 1.51% in the last five years (CIA). The population is concentrated in and around Tel Aviv, as well as around the Sea of Galilee; the south remains sparsely populated with the exception of the shore of the Gulf of Aqaba. Israel's annual population growth rate stood at 1.44% in 2022 (CIA), almost three times faster than the OECD average of around 0.6% (World Bank, 2020). With an average of 2.56 children per woman (CIA), Israel also has the highest fertility rate in the OECD by a considerable margin and much higher than the OECD average of 1.6 (World Bank). The median age is 30.4 years old, people between 0 and 14 years are 26.8% of the population, people from 15 to 24 years are 15,7% of the population, people between 25 and 54 years are 37.2% of the population, people aged 55 to 64 years are 8,4% of the population and people over 65 are 12% of the population (CIA, latest data available).

In Israel, 88% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%. This is truer of women than men, as 87% of men have successfully completed high-school compared with 89% of women (OECD). 1% of the labour force work in agriculture, 17% in industry and 82% in services (World Bank, 2020). The average household size is 3.1 people, 21% of the household count one person, 28% count 4 or 5 people, and 11% more than 6 people (UN, latest data available).
Purchasing Power
The GDP per capita (PPP) of Israel is USD 39,489.3 (World Bank, 2020), a decrease from USD 40,004 the year before. According to data from the Central Bureau of Statistics, the average monthly salary in Israel in March 2022 was NIS 12,672, a 1.5% increase year-on-year. The average household net-adjusted disposable income per capita in Israel is lower than the OECD average of USD 30,490 a year.
Due to the Covid-19 pandemic, private expenditure decreased by 9.2% in
2020 (CBS). The Gini Index of Israel was of 38.6 in 2018 (World Bank, latest data available).
A report by the Organisation for Economic Cooperation and Development, titled “The Pursuit of Gender Equality: An Uphill Battle,” shows that Israeli women have a particularly steep hill to climb. According to OECD data, women working full-time jobs earned on average 22.7% less than their male peers in 2018, which is the second highest gap in the OECD.
Consumer Behaviour
Israelis are responsive to advertising and branding. Shopping is a popular pastime and Israelis are interested in purchasing quality items, even if that means paying a higher, albeit reasonable, price. After-sales services and warranties are also mandatory, as Israeli consumers consider warranties to be a guarantee of the quality of the product. Israeli consumers enjoy new products and the Israeli legislation promotes national products. Israeli consumers are also quite interested in online shopping. According to the Israel Internet Association, 75% of Israelis (95% of total Internet users) shop online, making them the most connected shoppers in the world. Furthermore, around 80% of online Israeli shoppers make purchases from foreign websites, according to a study conducted by PayPal and Ipsos. E-commerce sales grew by 24% in 2021, and is expected to grow by 11% annually during 2021-25 (ecommerceDB).

According to a Nielsen survey for SIAL, 20% of consumers are ready to pay more for innovative products, whereas a third declare themselves willing to reduce their shopping cart and 65% of them consider "health" to be the key consideration while shopping. The Covid-19 pandemic induced further changes including increased digitalisation, a cut in non-essential spendings and increased focus on health and wellbeing.
Collaborative platforms for transport such as Uber in Israel is not common. Instead, locals use mobile application called GetTaxi, which is connected to a licensed taxi or public transport.
Consumers Associations
Israel Consumer Council , Established by the Ministry of Industry and Trade in coordination with the Standards Institute.
Consumer Protection and Fair Trade Authority , The Consumer Protection and Fair Trade Authority is an independent, internal governmental authority, established by Consumer Protection Law, 5741-1981.
Main Advertising Agencies
Wunderman Thompson

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Latest Update: July 2024