• TMCNet.com, Thursday, December 14, 2006 11:01 AM

Yahoo is restructuring, but so far, investors aren't buying it, as it's stock hasn't lifted much since the news. What does it do for Yahoo? Is being spread thin a bad thing if you've got more eyeballs than just about anyone else on the Internet? Would less traffic be better?

Clearly, monetization is the problem. Yahoo could also use greater search share, but to gain that, it will have to create a better search engine. Case in point: most Yahoo users currently leave the site to do their searches on Google. If Google provides the best leads and the most users, why should advertisers go anywhere else?

To a certain extent, Yahoo's woes come down to the fact that brand dollars still aren't what they could be online. Search is still the Web's dominant ad market, and brand advertising has a long way to go, but there is room for growth? Yahoo could also stand to improve on its are-we-or-aren't-we efforts in social networking.

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