Targeted ads are actually small businesses' greatest weapon against large businesses.<p>My company, LiveLoop, sells PowerPoint collaboration software. How do we get it in front of users? We buy Google ads. For 50 cents a click we get in front of the narrow sliver of people who desperately want our software NOW. And our users are ecstatic about our product once they start using it -- without targeted ads, they'd never have heard of us.<p>How does Google Apps, one of our competitors, advertise? However they want to. Billboards in Times Square. Super Bowl commercials. Anything they want, really.<p>Startups begin by serving narrow audiences, and targeted ads are today's best way of finding narrow audiences. This may end up hurting the wrong people.