Introduction: The Technologies Shaping Modern Customer Engagement

Marketing, Digital & Media accounts for 21.5% of Israel’s retail tech ecosystem, making it the second largest retail tech category in the country.

The category spans 203 companies focused on personalization, customer engagement, commerce media, content optimization, and customer intelligence. As retailers compete for attention, loyalty, and conversion across increasingly fragmented digital channels, demand is growing for technologies that help brands engage customers more intelligently and more efficiently.

Israeli companies are building directly in this space, developing solutions focused on personalization, customer engagement, commerce content, audience intelligence, and AI powered optimization.

This momentum is reflected throughout the 2025 Retail & Commerce Tech Report, where Marketing, digital and media emerged as one of the ecosystem’s largest and most active categories.

The numbers highlight the scale:

  • 21.5% of all retail tech companies operate in this category
  • The segment includes 203 active companies
  • It produced 23 acquisitions and 3 IPOs
  • AI powered personalization and content optimization continue attracting strong investor interest in 2025

Download the full report to explore all retail tech categories, ecosystem trends, funding insights, and the Top 100 Israeli Retail Tech Startups.

Screenshot 2026 06 21 at 10.50.00 AM

Retail Marketing Technology: From Engagement to Action

The marketing, digital and media category spans technologies tied directly to retail performance across digital channels, including:

  • Customer engagement platforms
  • Commerce media technologies
  • AI powered personalization
  • Audience intelligence
  • Digital content optimization
  • Loyalty and retention solutions

What distinguishes the category in 2025 is the growing emphasis on actionability. Retailers are increasingly prioritizing platforms that can translate customer signals into immediate commercial outcomes.

As Shimi Azaria, CEO and Co-Founder of Howazit, explains: “Customer engagement tools only matter when they help retailers and brands act, not just listen. With AI analyzing every interaction, the real advantage is turning engagement into a clear, real-time action plan that drives conversion, loyalty, and recovery.” Howazit was also featured in the Top 100 companies in this category in our complete coverage of the Top 100 Tech.

This shift aligns closely with broader retail priorities around measurable performance, retention, and customer lifetime value.

Screenshot 2026 06 21 at 10.57.37 AM

AI Is Reshaping Retail Marketing Technology Infrastructure

AI is now deeply embedded throughout the marketing, digital and media category. Israeli companies are increasingly building technologies that automate and optimize:

  • Personalized product recommendations
  • Dynamic content generation
  • Commerce focused media experiences
  • Customer segmentation
  • Predictive engagement strategies
  • Conversion optimization

Funding activity reflects this momentum, and notable recent funding rounds include:

  • Humanz AI raised $31.1M, including $15M in December 2025, for its creator marketing and influencer intelligence platform
  • Tastewise raised $50M in 2025, leveraging AI to help brands and retailers identify food and consumer trends and make faster product decisions
  • Bria raised $40M in 2025, providing enterprise generative AI tools for creating and optimizing visual content with licensed data

Investor interest is concentrating around platforms capable of influencing measurable retail outcomes across acquisition, retention, and customer engagement.

Screenshot 2026 06 21 at 10.59.01 AM

A High Exit Category with Strong Commercial Demand

Marketing, digital and media continues producing a high volume of strategic exits relative to the amount of capital deployed across the category.

This reflects strong demand from global retailers, commerce platforms, and enterprise technology companies seeking capabilities around personalization, customer intelligence and digital engagement. Notable transactions include:

  • Anagog was acquired by Intent HQ in 2024, strengthening customer intelligence and personalization capabilities.
  • Hour One was acquired by Wix in 2025, adding AI generated video technology to its commerce and content platform.
  • Idomoo completed an IPO, reflecting growing demand for personalized customer engagement technologies.

The category’s combination of lower average capital requirements and strong exit density continues making it one of the ecosystem’s most commercially efficient segments.

 

The Top 100 Retail Tech Startups

The strength of the category is also reflected in the number of ecommerce enablement companies featured in the Top 100 Israeli Retail Tech Startups.

Highlighted companies are included in our complete report coverage on the Top 100 Startups.

Screenshot 2026 04 18 at 9.54.33 PM

Screenshot 2026 06 21 at 10.53.35 AM

Conclusion: Retail Marketing Technology Becomes Core Retail Infrastructure

Marketing, digital and media has evolved far beyond traditional engagement tools. In 2025, the strongest companies in the category are helping retailers operate more intelligently across acquisition, personalization, retention, and customer experience. AI is accelerating this shift further, enabling retailers to act on customer behavior in real time and at scale.

Israel’s ecosystem has become particularly strong in this area because of its ability to combine applied AI, commerce expertise, and global deployment capabilities.

Download the full report to explore the full ecosystem analysis, funding data, Top 100 tech, and additional retail tech categories.

Screenshot 2026 06 21 at 10.54.07 AM

Yael Kochman