April 19, 2012–The growing prevalence of the Internet in all areas of life is changing the map of advertising as well, with advertisers and agencies allocating more and more funds to digital advertising.
This trend has seen Israel quietly turning into a hub for digital advertising optimization. Between 2007 and 2011 the industry doubled its revenues, according to Yankee Group, a research and advisory firm. Although TV advertising still draws larger budges than its digital counterpart, the gap is expected to narrow in the next few years, according to digital marketing consulting firm eMarketer.
The Israeli startup industry has spotted the trend and is taking online advertising by storm. Companies likes Kenshoo, Matomy, Midiamind and Outbrain have all developed products aimed at digital campaign optimization and are spearheading a slew of recently founded Israeli technology companies focused on digital advertising.
According to IVC Research Center, Israel boasts 139 digital advertising companies at this time, of which 67 are in their seed stage; 20 are in their R&D stage; 45 are generating initial revenues and 6 are in their growth stage. The aggregate value of these companies in 2011 was one billion dollars and their aggregate revenue was a half a billion dollars, according to Oren Baron, a senior partner at Ernst & Young Israel…Read More>>