Digital marketing is a booming field in Israel, with the number of companies offering online advertising reaching an all-time high, with more than 30,000 digital marketers in the country.
The number of digital marketing insurers has soared from 7,500 in 2013 to almost 25,000 today, with digital advertising industry experts attributing the surge to the increasing demand for insurance.
The Israeli Ministry of Finance estimates that digital marketing will be a major pillar of the economy by 2020, with an estimated 80 percent of Israel’s $100 billion GDP coming from digital marketing.
The government has allocated $2 billion to digital marketing through its digital marketing program, and is planning to allocate more.
“There is a strong demand for digital insurance in Israel and, unfortunately, a lot of companies are not ready to get it,” said Erez Segal, head of digital advertising at the Jerusalem-based digital advertising agency Digital Advertising and Marketing Agency.
The demand for online insurance has increased as the country has moved toward a more digital economy.
The number of internet users in Israel rose from 8 million in 2014 to 15 million in 2017.
Digital advertising is now a booming business, said the head of a large digital marketing agency.
But for some firms, it is an expensive and time-consuming process to register, and their advertising budgets can reach into the tens of millions of shekels.
According to Segal’s firm, there are more than 10,000 Israeli firms offering online insurance, of which some 30,500 have been approved.
The biggest players in the sector are Acumen, Digital Advertising Agency and Akiba, which Segal said offers insurance for a $10,000 deductible, but its insurance rate is only 10 percent.
Digital marketing is growing in Israel because of the economic boom, and with the economy booming, the insurance industry is also booming, said Meir Ben-Haim, a partner at Digital Marketing Agency, an Israeli digital advertising company that is looking to expand in the future.
In Israel, the digital marketing industry has seen a boom in the last few years, as a result of the growth of mobile devices and social networking.
Ben-Hibbert, a professor at Tel Aviv University’s Herzliya College, said that the digital market is an attractive opportunity for companies because it is a relatively new industry, but it also offers a great opportunity to get insured.
“The idea is that if you are not insured, you can be sued,” Ben-Harbert said.
The insurance industry has also seen an increase in the number and the types of products it offers.
Ben-Hurbach noted that digital insurance covers the full amount of advertising budgets, from advertising to online promotions, with some companies also offering discounts for certain categories of products, such as video game accessories.
The companies that offer insurance have also seen a rise in the quality of their offerings.
Ben Hurbach said Acumen’s digital insurance is more professional, with detailed information about each customer’s claims, along with an online chat feature.
Akiba’s insurance offers “insurance to customers that do not need to pay for ads,” with the information on each customer also included, Ben-Hahem said.
Another option for digital marketers is to work with a small firm, such a Kefin, which specializes in online marketing, Ben Hurbei said.
“Kefin’s digital marketing is really good, but they can charge up to 30 percent higher than the average insurance company,” he said.
“I have a friend that works with a KEFIN client and she pays $20,000 a year for insurance, which is very expensive.
So we have to negotiate a deal with her,” Ben Hurber said.
Ben Hurber and Ben Hahem, both of Digital Marketing Agencies, also advise online advertising companies on how to prepare their marketing campaigns for the new market environment.
“We can get them to take more risks in the beginning, to take risks that other people are not willing to take,” Ben Haemin said.
But he added that the risks should not be excessive.
“It’s good to have a small company that you can rely on,” Ben Harbith said.
Some online advertising firms, like Akiba and Digital Advertising agency, also offer a discounted rate for the first few months of an advertising campaign.
“When we go to market, we ask our clients to sign up for the insurance policy and it is paid for in installments,” Ben Haber said.
Akiba, Digital Marketing and Digital Agency are both affiliated with the Jerusalem Fund, an independent Israeli nonprofit organization dedicated to the protection of the digital economy and to promoting the development of Israel as a digital hub.