Israel flag Israel: Buying and Selling

Advertising and marketing in Israel

Marketing opportunities

Consumer Profile
There are around 8,675,000 people living in Israel. 52.5% are Sabras (Israeli-born Jews), 22.5% are immigrants (mostly from Europe and The Americas, but also from Asia and Africa) and 20% are Arabs. The density of population is 403 inhabitants/km². 92.6% of Israelis live in cities, with an average annual rate of urbanization of 1.64% 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 1.46% in 2020, almost three times faster than the OECD average of around 0.65%. With an average of three children per woman, Israel also has the highest fertility rate in the OECD by a considerable margin and much higher than the OECD average of 1.7.

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 World Factbook, 2020)

In Israel, 87% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 74%. This is truer of women than men, as 86% of men have successfully completed high-school compared with 88% of women. 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.
Purchasing Power

The GDP per capita (PPP) of Israel is USD 42,193 (World Bank, 2019), an increase from USD 40,261 the year before. According to data from the Central Bureau of Statistics, the average monthly salary in Israel in June 2019 was NIS 11,175, a 2.9% increase year-on-year. The average household net-adjusted disposable income per capita in Israel is lower than the OECD average of USD 33,604 a year.
Private consumption rose 3.9% on a yearly basis in 2019, with non-durable goods accounting for the most part (
Central Bureau of Statistics). The Gini Index of Israel was of 39 in 2016 (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. The data was confirmed by the CBS, which showed that in 2018 women working full-time jobs earned on average 27.5% less than their male peers.

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, 79% of online Israeli shoppers make purchases from foreign websites, according to a study conducted by PayPal and Ipsos.

According to a Nielsen survey for SIAL, 20% of consumers are ready to pay more for innovative products, whereas 34% declare themselves willing to reduce their shopping cart and 65% of them consider "health" to be the key consideration while shopping.

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
Publicis
Wunderman Thompson
Parazar
Natie

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Latest Update: June 2022

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