If you're right about that being the dominant effect we should see small businesses increase as a portion of GDP as online ads become more prevalent, but as best I can tell we aren't seeing that at all. For example this[0] chart from the US Chamber of Commerce shows their share of the economy actually shrinking significantly.
An alternative effect could be that online ads are an avenue for better resourced established companies to out compete and stifle upstarts. Startups are always pressed for resources and running an effective online ad campaign can take significant resources.
You're surely right that some small businesses have benefited from the online ad market, but I suspect that on average larger companies have benefited to a greater degree.
> if you're right about that being the dominant effect we should see small businesses increase as a portion of GDP as online ads become more prevalent
Ceteris paribus. Running a small business in most states involves more rules today than it did in 2000. (Common denominator: the cost of financial transactions due to post-9/11 anti-money laundering rules.)
An alternative effect could be that online ads are an avenue for better resourced established companies to out compete and stifle upstarts. Startups are always pressed for resources and running an effective online ad campaign can take significant resources.
You're surely right that some small businesses have benefited from the online ad market, but I suspect that on average larger companies have benefited to a greater degree.
[0]https://www.uschamber.com/small-business/small-business-data...