Yahoo! is embarking on a major transformation. The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers.

The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers. There is an expectation that after six to nine months of calling on traditional advertisers, dollars will come pouring in. Our research suggests that turning 'toe-dipping' budgets into real dollars may take over two years.

While only 10 percent are considered 'financially troubled,' virtually every Internet company we have come across is tightening its belt. Clearly, the company has a lot of work in front of it.

We are hopeful that the company will lay out more conservative guidance for 2002 as a means to rebuild credibility with investors.

As the FTC noted in its recent review of 2002 advertising, illegal underage drinking continued to decline in spite of the increase in alcohol advertising that accompanied the introduction of several new brands that year.

No company that markets products or services to the consumer can remain a leader in its field without a deep-seated commitment to advertising.