Zoomd

Oct 18, 2023

Media and marketing pros from Warner Bros, YouTube, Tubi and more will share insights, perspectives and advice on how to keep up in this ever-changing industry. Join them in LA at the Convergent TV Summit on October 25. Sensitive content: This article mentions deaths related to the Israel-Hamas war. At the start of October, the advertising industry usually kicks into high gear to prepare for the following year, monitoring client performance during the critical fourth quarter and attending a plethora of industry events in October and November. But this year has been anything but business as usual in Israel, a popular headquarter location for ad-tech firms outside of the U.S. and U.K. After Hamas militants attacked Israel on Oct. 7, the region has descended into conflict, with the Israeli army advancing into the Gaza Strip in response. More than 1,400 Israelis and more than 2,800 Palestinians have been killed, according to The New York Times . While the fate of the ad-tech industry pales in comparison to the huge loss of life on both sides, there are ramifications for a global industry that is navigating a conflict and will need to rebuild. Many ad-tech employees have been drafted, as Israel—which has had conscription since its founding in 1948—calls upon hundreds of thousands of reserve soldiers. As other workers are staying home to grieve the loss of loved ones and care for children attending schools virtually, Israeli ad-tech companies are shelving marketing plans, holding new product launches and skipping conferences, five Israeli ad-tech executives told Adweek. “Everyone knows someone that got murdered or got hurt,” said Omri Argaman, chief marketing officer of Zoomd, a campaign management mar-tech tool publicly traded on the Toronto Stock Exchange. Argaman shared that one of his best friend’s 24-year-old daughter was killed in the violence. Several prominent ad-tech firms were founded or are currently headquartered in Israel, including Taboola, Outbrain, Primis, Anzu and Datonics. Adweek was unable to reach any ad-tech firms based in Palestine. TechCrunch outlined the impact on Gaza’s growing tech scene, which has seen offices physically destroyed and employees evacuating the region. While Israeli ad-tech firms are scaling back some operations, sources said ad-tech employees not called to fight in the army are working harder to pick up the slack, as making sure Israel’s economy is not affected is seen as a point of national pride. “Everybody is doing more than they used to before Oct. 7,” Argaman said. A maintenance mindset while facing cyberattacks Several sources said that since the attacks earlier this month, their firms have focused on maintaining and supporting existing clients rather than adding new features. Sell-side video ad-tech firm Primis is more focused on maintenance than growth, as 20% of its employees or their partners have been drafted, said vp of marketing Lior Shvo. Meanwhile, the research and development team has been dealing with increased cyberattacks. “We always have cyberattacks,” Shvo said. “This week, the volume was so much bigger.” Hacker groups from around the world have claimed credit for cyberattacks on both Israeli and Palestinian websites and apps, Bloomberg reported . To prevent cyberattacks, Zoomd is blocking traffic from websites based in countries known for them, which is hurting organic traffic. “On a regular daily basis, we get leads to the company, and that went down by 50%” since the beginning of the war, Argaman said. Zoomd is also decreasing its paid advertising globally by 50% partly because the company has fewer staff—10% are fighting in the war—to process and, ultimately, pitch for new clients. And Zoomd is pausing partly in an effort to not advertise too aggressively, especially to Israeli consumers mired in conflict. Argaman doesn’t anticipate long-term impacts to this advertising pause unless the conflict expands beyond the Middle East. Companies based in Israel that advertise to Israeli consumers have generally rapidly decreased their advertising efforts, two ad-tech executives said. Delaying products, testing and 2024 plans At Primis, executives not only paused launching a new marketing campaign but are also delaying making plans for next year, an activity typically done during the fourth quarter, Shvo said. At mobile app-focused demand-side platform Bigabid, the conflict not only affects routine business strategy but also requires adaptation to macro industry changes. The company had been testing solutions for Apple’s iOS 17 update, the operating system released last month that will make it even harder to target ads to users, as well as testing Google’s Privacy Sandbox, a suite of solutions intended to replace the third-party cookie. “We stopped any type of experiment,” said Bigabid founder Ido Raz. “It’s definitely something in the road map and our strategy. Hopefully, it will only be a month.” Despite these setbacks, Israeli ad-tech executives said that clients have been understanding, with two executives saying clients reached out proactively before they even had to email. “They understand that some things will be delayed,” Raz said. Still, as Israeli ad-tech companies find some support in the international community, several executives speaking to Adweek said their staff is avoiding the conference circuit—an opportunity for driving leads—preferring to be close to their families. “It’s a celebration. You want to go meet friends and partners and celebrate and go to dinners and parties,” said Shvo of the conference atmosphere. “It’s not something anything of us can really imagine doing right now.” Enjoying Adweek's Content? Register for More Access!