Only weeks after being attacked again for passing on Facebook last year, Yahoo has answered its critics and addressed one of its most glaring weaknesses. The company's $680 million purchase of Right Media, an online advertising exchange backed by Redpoint Ventures, will provide a more viable alternative to Google, particularly when it comes to display ads.

And it shows that unlike its critics, Yahoo knows that audience is not its problem. Buying Facebook or any other Internet media company with a huge audience isn't going to solve Yahoo's most pressing problem. Monetizing its audience effectively is its problem and Right Media is a step in the right direction toward solving that.

But ultimately, Yahoo needs to intensify its work on closing the enormous gap that still exists between its online keyword ad platform and Google's. Unfortunately for Yahoo, that challenge can't be solved with one big acquisition.

For more on Yahoo's Right Media acquisition, see:
Terry Semel
The Deal
Company press release

Tags: yahoo, right+media, google, vc, venture+capital.