Now that many papers have an online presence they should have more, not less advertisers available. The customer/reader is accessing them via the internet the customer/reader can purchase goods via the internet as well. In the physical paper it makes less sense for a product sold online to be advertised, so that market is probably nil.
My local paper does advertise brick and mortar local shops on their website, meanwhile Amazon.com reports its best-ever holiday season. I see zero, non-local advertisements on my local papers website.