Business

How Facebook became Israel's digital word of mouth

DSS Team
September 2026 9 min
A smiling man at a street café table in the evening holds his phone; recommendation cards with people's photos, likes, hearts and a star float around him, linked by glowing lines, against night-time Haifa with the lit hillside, a dome by the sea and the port

There is a very Israeli way to look for anything. You don't have to open Google. You can just ask people.

"Anyone know a decent electrician?"
"Can you recommend a nail technician in Haifa?"
"Need a lawyer, preferably Russian-speaking."
"Who installed an air conditioner and lived to tell the tale?"

And almost always someone answers. Sometimes one person. Sometimes twenty. Sometimes a small civil war breaks out between the fans of two different plumbers.

But the scheme itself works. And that is exactly why Facebook took root so well in Israeli small business.

It did not invent word of mouth. It simply took a very old habit — ask your own people — and made it digital.

Before Facebook, it all already worked

It is important to start here. Israeli small business did not sit around waiting for a social network to finally learn how to get clients. Referrals worked long before the internet.

Someone needed a good doctor. Someone needed a handyman. Someone needed a person who would lay tiles and not disappear after the first deposit. People asked family, friends, neighbours, colleagues, parents from school, friends of friends.

For a customer this is convenient, because a referral immediately removes part of the fear. If you are simply told:

"Here's an electrician's number,"

that is one thing. If they add:

"He's worked for me twice already, all good,"

that is something else entirely. You get not just a contact. You get someone else's experience.

And for a small business this is almost perfect advertising. It doesn't look like advertising.

Why referrals are so powerful

Imagine two situations. The first. You see an ad:

"The best plumber in Haifa. Fast. Quality. Affordable."

Who says he's the best? The plumber. What a surprise.

The second situation. Your colleague says:

"Call this guy. He replaced a pipe for me, showed up on time and didn't raise the price afterwards."

In the second case there is usually more trust. Because the person recommending seemingly has no reason to deceive you.

That is why word of mouth works especially well where quality is hard to judge in advance. You can look at a TV in a shop. But figuring out whether the lawyer, handyman, beautician, plumber or air-conditioning technician in front of you is any good is much harder.

So a person looks not only for a service. They look for someone who is already trusted by someone else.

Then Facebook scaled up that "someone else"

This is where the main change happened. Before, you could ask ten acquaintances. With Facebook you got the ability to ask ten thousand strangers.

But psychologically the question barely changed. You were still addressing not a company. Not an advertising banner. But people. For example:

"Guys, recommend a good washing machine repairman in the Krayot."

And then answers appear under the post:

"This one's good."
"Confirmed."
"We called him a month ago."
"Just not the one mentioned above."
"My husband does this, DM me."
"After him everything broke at our place."

And suddenly what you have in front of you is not an ad. It is a small investigation. Sometimes a very small one. Sometimes 86 comments long.

This model fit Israel almost perfectly

Why did Facebook groups become such a convenient tool here in particular? There are several reasons.

First, the country is small

Many services are local. A person doesn't need "the best electrician in the world". They need someone who will come to their neighbourhood today or tomorrow. A nail technician doesn't need a client from the other end of the country either. She needs people for whom it is convenient to get to her.

So the question often sounds very specific:

"Who do you recommend in Haifa?"
"Anyone in Nesher?"
"Who works in the Krayot?"

A Facebook group is perfect for that kind of search.

Second, there are a great many communities here

City groups. Neighbourhood groups. Professional. Parents'. Russian-speaking. English-speaking. Arabic-speaking. Groups for new immigrants, specific professions, mums, tenants, pet owners.

As a result, a person can ask a question not "to the internet in general", but to the specific group whose opinion means something to them. That is an important difference.

If a Russian-speaking person needs a notary, it may matter to them not just to find a notary. They need one who speaks Russian properly and understands their documents. A general search gives you a list. A group gives you:

"I went to him. His Russian is fine. Explains things clearly."

And that is much stronger.

Third, Facebook kept the feeling of real people

When someone searches on Google, they see websites, listings, ratings. When they ask in a group, they see names and faces. Even if half of those people are complete strangers, the brain perceives the situation differently.

There is a specific woman who writes:

"Been going to her for three years."

There is a man who replies:

"Did a job for me, all good."

There are two more who add a plus. You get a small collective confirmation. Not a scientific study. But an everyday decision usually doesn't require a scientific study.

At some point the group became stronger than the website

Now picture a small business owner roughly ten years ago. Let's say he's a handyman. He has a choice.

Option one:

  • find a developer;
  • pay;
  • gather photos;
  • write copy;
  • build a website;
  • then somehow bring people to it.

Option two:

  • go to Facebook;
  • create a page;
  • post his work;
  • reply to comments;
  • take part in local groups.

Which is easier? The answer is obvious. Especially if in the second case clients are already coming.

And again, it is important not to laugh at the entrepreneur. His decision was logical. If a free tool brings people, why complicate things?

Facebook gave small business three things at once

The first — an audience. There was no need to look for people somewhere else first. They were already inside Facebook.

The second — trust. Clients were brought not only by the business's own posts, but by other people's recommendations.

The third — simplicity. No need to figure out hosting, domains, SEO and other words that a normal person is under no obligation to love.

Created a page. Added a phone number. Put up photos. Work away. At that stage it was a very strong offer.

And WhatsApp closed the last gap

Facebook helped people find. WhatsApp helped them agree. And the result was a scheme that still lives on in a huge number of small businesses:

referral on Facebook → message on WhatsApp → booking

Very simple. A person asks:

"Recommend a technician."

They get a name. They tap the profile. From there they go to WhatsApp. They write:

"Hi, you were recommended to me."

And that's it. The system works.

According to the Israel Internet Association, in 2026 about 99% of Israeli adults use WhatsApp, and about 90% use Facebook. So this is no small niche. These tools are literally in almost everyone's hands.

And that's why a website started to seem unnecessary

Seen through the owner's eyes, the logic is very clear. Clients come from a group. Photos are on Facebook or Instagram. Conversations are on WhatsApp. The map is on Google. Payment is through Bit.

Why a website as well?

It is a good question. Because if every separate piece of the job is already covered by something, a new system really does seem unnecessary. Especially while the business is small.

The person doesn't feel:

"I have a problem."

They feel:

"I have five apps, but everything works."

And this is one of the main reasons why social networks replaced proper digital infrastructure for so many small businesses for so long. Not because social media is better at everything. But because it was good enough.

But word of mouth has an interesting quirk

It works beautifully. As long as it works. You can't switch it on with a button.

Today someone in a group asked:

"Need a nail technician."

And four people recommended you. Great.

Tomorrow nobody asked that question. The day after, someone asked it, but your competitors answered first. A week later a former client saw the post and wrote your name. And two weeks later nobody came across you at all.

So referrals give trust. But they are poor at giving predictability. That is a very important difference.

And a referral doesn't always mean a sale

Say someone was recommended five times. A new client saw the name. What next? They might:

  • write straight away;
  • google the name;
  • check Instagram;
  • look at photos;
  • search for reviews;
  • find out the price;
  • try to work out where the technician is based;
  • decide whether it suits them or not.

A referral opens the door. But it doesn't necessarily walk the person all the way through.

And the more expensive or complex the service, the more a person usually wants to check for themselves. Asking for the contact of someone to change a lock is one thing. Choosing a lawyer is another. Or a beautician. Or a specialist you are about to pay several thousand shekels.

There, a single phrase:

"Somebody recommended him to me"

may no longer be enough.

Groups create trust. But sometimes they create noise

Facebook referrals have another side. Very often a person asks a simple question:

"Recommend a technician."

And gets thirty answers. Ten of them are real recommendations. Five are relatives of technicians. Another five are the technicians themselves. Three people are promoting a friend. Two are arguing with each other. One recommends someone from a different city altogether.

And somewhere at the bottom there's a comment:

"Sent you a DM."

This is no longer quite word of mouth. It is a small marketplace. Just without shop signs. And the person still has to choose.

Sometimes a referral looks more convincing than it is

When five people name the same specialist, it seems: there's the winner.

But we don't know:

  • who these people are;
  • whether they used the service;
  • when they used it;
  • how similar their requirements are to ours;
  • whether they know the technician personally.

This doesn't mean referrals are bad. They simply aren't a perfect verification system. A person still has to think.

But for small business it was an incredibly cheap channel

And here we come back to the main point. Why did this model take hold so firmly? Because for many years it cost businesses almost nothing. In monetary terms.

An owner could personally:

  • reply in groups;
  • post their work;
  • ask clients to leave a recommendation;
  • write comments;
  • run a page.

If it all worked, the direct advertising budget could be very small. For a technician just starting out, that is a huge plus. When money is tight, a free client looks especially attractive.

True, it later turned out that the word "free" has some nuances. But that's the next story.

Read next

Social media blended advertising with life

Ordinary advertising looks like advertising. A banner. A listing. A video. It is clear that someone is selling you something.

On Facebook everything turned out softer. Here's a photo of a child. Here's a news item. Here's an argument about parking. Here's someone asking:

"Anyone know a good hairdresser?"

And here is already a business recommendation. The advertising sits inside an ordinary human conversation. And so it is perceived more calmly. Especially when the business isn't recommending itself.

It is a very powerful mechanism. And it explains why small business fell in love with groups.

For Russian-speaking Israel it proved even stronger

There is a separate important layer here. A new immigrant arrives in the country. They still have few local contacts. Their Hebrew may be weak. They don't know:

  • which doctor to choose;
  • where to find a handyman;
  • who to trust with documents;
  • where to get the car repaired;
  • which lawyer to go to;
  • which company is decent and which isn't.

But they have Facebook. And a Russian-speaking group. In a sense, such a group replaces a directory, a neighbour, a friend, a local newspaper and a notice board all at once.

A person asks a question in a language they understand. And gets answers from people who have already been down the same road.

So for Russian-speaking small business, Facebook was not just an advertising platform. It was part of the community's infrastructure.

The same works in other communities too

This is not only a Russian-speaking story. Different groups inside Israel have their own digital spaces. Arabic-speaking communities. English-speaking. Neighbourhood. Religious. Professional. Local.

That is why Facebook kept such a big role here even when the younger audience moved actively to Instagram and TikTok. In 2026 Facebook was still used by about 90% of Israeli adults.

That is a lot for a platform that has been periodically declared "dead" for about ten years now. Apparently nobody told Facebook.

But the business quietly became dependent

When a client comes from a Facebook group, it seems they were brought by a referral. And that's true. But between the person asking and the person answering, there is still the platform.

It decides:

  • which posts to show;
  • which comments to push higher;
  • which notifications to send;
  • which groups to suggest;
  • what a person sees today and what they don't.

While everything works well, this is almost invisible. Just like electricity. Nobody thinks much about it while it's there. But the more a business depends on one platform, the more its rules matter.

And this is where a quiet substitution happened

At first Facebook was a place where people talked. Business was simply nearby.

Then there were more businesses. More pages. More groups. More content. More advertising. More competitors.

And if before it was enough simply to be present, gradually that stopped being enough. Now you had to:

  • post regularly;
  • reply faster;
  • take better photos;
  • shoot video;
  • keep up with formats;
  • understand the algorithm;
  • sometimes pay for ads.

Word of mouth didn't disappear anywhere. It's just that a whole industry of fighting for attention grew up around it.

And this is where the story of why Facebook was an almost ideal tool for small business ends. And another one begins. What happened when there was no longer enough free attention to go around.

So Facebook can't simply be called "bad"

That would be too simple. It gave small businesses a huge opportunity. It let them find clients without a big advertising budget. It gave a platform to those who had no website. It helped people find services within their own city and their own language environment. It made referrals fast. It expanded word of mouth from a few acquaintances to entire communities.

For many businesses it truly was the best option of its time. The problem isn't that they chose Facebook. The problem appeared later. When it turned out that a temporary convenient solution had gradually become the main infrastructure of the business.

The page — there. Reviews — there. Audience — there. Referrals — there. Conversations start there.

And if the business isn't properly represented anywhere else, the owner is effectively building their digital life on territory they don't control.

And now for the interesting part

Once, Facebook gave small business almost free access to a huge audience. It was so convenient that a website really could seem unnecessary.

But every system has a limit. When millions of people and companies start fighting for the same attention, simply being present is no longer enough.

And gradually an entrepreneur who came to Facebook just to show their work discovers that they need to:

  • plan content;
  • take photos;
  • shoot video;
  • write;
  • analyse;
  • publish;
  • reply;
  • promote;
  • sometimes pay.

In other words, the person came there as a craftsman. And a few years later suddenly discovered they had a second profession.

They are now also a small media outlet.

And that is what the next article in the series will be about.

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