She announced her decision to cancel her show in the capital.
The ad was placed by outspoken rabbi Shmuley Boteach's This World: The Values Network, and features an image of the singer superimposed over a photo of men running through rubble cradling babies.
"While Lorde claims to be concerned with human rights, she hypocritically chose to proceed with her two concerts in Putin's Russian Federation, despite his support for Assad's genocidal regime which has already claimed the lives of over 500,000 innocents, and Russia's own endless litany of human rights abuses", the ad, which took up page five in the newspaper's 31 December edition, reads.
"Last December, New Zealand sponsored a United Nations resolution which both condemned Jewish communities in Judea and Samaria, and even denied Jewish claims to the Western Wall, the area of Judaism's holiest site".
Jewish Council spokesperson Juliet Moses says the advertisment does not promote education or understanding.
According to Jerusalem Post journalist Amy Spiro, Israel's Culture Minister Miri Regev released his own statement asking Lorde to think twice about cancelling, in which he said: "Lorde, I'm hoping you can be a "pure heroine" like the title of your first album".
Lorde was scheduled to perform for Tel Aviv Convention Centre on June 5 as a part of her 2018 world tour.More news: Jessica Alba welcomes new baby
Boteach reiterated his protest in a video posted online from Times Square as thousands gathered to celebrate New Year's Eve.
His allegations of hypocrisy were echoed by the Zionist Federation of New Zealand immediately after the cancellation.
Lorde is also criticised in the advert for agreeing to perform in Russian Federation "despite Putin's support for Assad's genocide in Syria". Boteach has also criticised John Kerry, the former secretary of state, for "justify [ing] the spilling of Jewish blood" by working towards a nuclear deal with Iran.
It lamented that the singer has "exposed herself to wider attack" by choosing to cancel the performance altogether.
The Palestinian Campaign for the Academic and Cultural Boycott of Israel posted a statement on Twitter thanking the artist for "heeding appeals from your fans against Israel's art-washing of its brutal oppression of Palestinians".
Is she the only person to cancel a concert in Israel?