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Research has investigated the impact of the COVID-19 pandemic on businessperformance and survival, indicating particularly adverse effects for small andmidsize businesses (SMBs). Yet only limited work has examined whether and howonline advertising technology may have helped shape these outcomes,particularly for SMBs. The aim of this study is to address this gap. Byconstructing and analyzing a novel data set of more than 60,000 businesses in49 countries, we examine the impact of government lockdowns on businesssurvival. Using discrete-time survival models with instrumental variables andstaggered difference-in-differences estimators, we find that governmentlockdowns increased the likelihood of SMB closure around the world but that useof online advertising technology attenuates this adverse effect. The findingsshow heterogeneity in country, industry, and business size, which we discussand is consistent with theoretical expectations.

COVID-19 Demand Shocks Revisited: Did Advertising Technology Help Mitigate Adverse Consequences for Small and Midsize Businesses?