The signs are looking worse for Yahoo! as they continue to lose money in the search arena and layoffs are scheduled. Rumor has it the organic search team will be hardest hit. The update Yahoo! completed saw initially very poor results, but the results did improve. It appears they are using incoming link data more heavily, but still allowing above average keyword density percentages to rank well. In the analysis I did, it looks like Yahoo! is driving an extra 3% in the organic search area. While that is an improvement, it won’t fix their problem.

My advice: if you are currently optimizing pages for Yahoo! you might want to focus your efforts in MSN.