In 2022 the revenue of Israeli game development companies reached $9 billion, a 9-fold increase in the past five years.

More than 200 companies operate in the market, among them include large players like our clients Plarium. Further companies like Playtika, Moon Active, Candivore, Toya, SuperPlay, Overwolf, Playstudios, Buff.Game, Happy Juice Games, NetoMedia, Veryo Games, MysticGG, OneUp Games, Skillzzgaming, Pretzel Labs, My Town Games, SciPlay etc.

According to the report, Israel’s gaming industry saw an impressive 54% CAGR (Compound annual growth rate), with revenues increasing by approximately 760% over the past years.

Israeli game companies mostly focus on social and hyper-casual games with China being their biggest market.

In 2022, action and strategy games generated the highest percentages of revenue. Action games had the highest percentage of revenue on the App Store (17%), while strategy games contributed about 20% of total revenue on Google Play.

In terms of total revenue, Coin Master developed by the Israel company Moon Active was the most outstanding, followed by PUBG Mobile and Zynga Poker.

Last year, on the App Store, casual, action and simulation games were the most downloaded. Whilst on Google Play, the Top-3 most-downloaded game genres were casual, action and puzzle games.

In terms of top game genres, hyper-casual games were among the most Top-10 downloaded games on Google Play. With The game; Fill The Fridge! by Gybe Games being the Top 1 most-downloaded game in Israel.

Israel Mobile App Audience

In January 2023 Israel’s total population was 9.11 million people. The population increased by 135 thousand between 2022 and 2023.

In 2022, 4.17 million people made online purchases in Israel, spending a total of $6.69 billion. The average purchase receipt was $1,605.

There were 7+ million social media users in January 2023, among them 6 million users aged 18 and above. Music videos, entertainment and how-to videos were the most popular content in Israel.

Facebook was preferred by 4.55 million users in Israel and YouTube had 7.06 million users by early 2023.

Last year the most trending queries on YouTube was filmmaker and blogger Dhar Mann. The most searched games titles were Elden Ring, Call of Duty: Modern Warfare and God of War: Ragnarok. In August 2022, blogger MrBeast entered the top 25 YouTube trending queries.

Instagram had 3.90 million users in Israel, TikTok had 3.85 million users and Facebook Messenger reached 2.85 million users by early 2023. LinkedIn was the least popular with 2.30 million users.

Israel Mobile Ad Market Spend

In 2023, advertising spending in Israel’s digital advertising market is projected to reach US$1.48 billion.

The largest market segment is Search Advertising with an estimated market size of $0.60 billion in 2022. Banners advertisement estimated at $0.48 billion USD, video games — $0.29 billion USD, classified — $0.11 billion USD.

Israel is home not only to game development companies, but also to analytics giants (i.e. AppsFlyer) and the leading business platform for the app economy (i.e. Ironsource), which creates the most favorable climate for creating, developing and promoting products.

There is an opinion that advertisers in Israel do not have enough advertising tools for marketing. Most of the spending comes from Google and Facebook, which also have a monopoly on user data. To overcome the market monopoly we offer our clients an alternative in the form of OEM advertising. Read more on it in our blog.