Web sites are about to repeat a big mistake that newspapers once made, according to an article in the New York Times.

When newspaper ad rates spiked, small advertisers had no place in which they could afford to advertise. So they left newspapers and started advertising in community newsletters and other alternative media.

In effect, newspapers inadvertently created an atmosphere for small competitors to survive. The accumulation of small competitors in the market is now at least part of the reason for declines in ad revenue.

Don’t get me wrong: Web ad rates in general must increase as the newspaper business continues to move online.

But remember the small advertisers. Remember that small businesses eventually grow into big businesses. And establishing a relationship early on will only help your newspaper’s future.

Create affordable options like text ads on search results, highly-targeted campaigns with small buys, or enhanced directory listings. Some things should just be free.

The most basic home or car listing or anything available on Craigslist should be free. Freebies get small advertisers using and learning about the site. When some money is floating in their budget, the business owner is likely to spend it some place familiar.