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