Yahoo outlined three key areas for growth in October 2006: improve search advertising, widen the lead in graphic advertising and pursue social media opportunities. In fact, they have structured the company around these key areas.

Project Panama was the company's latest adventure in search marketing. The revamped system was designed to reward advertisers with lower click costs upon receiving higher clickthrough rates. In short, relevancy is rewarded.

American advertisers are already enjoying the new Panama interface, while plans are in place to release the upgrade throughout the world in 2007, beginning with Japan. Will the new ad platform spell growth for Yahoo?

It worked for Google, so why not? The Panama platform successfully balances a user's need for relevant search listings with an advertiser's need for lower cost clicks, just like the Google paid search advertising system.

However, search is only part of the battle.

In order to successfully achieve true product diversity, thereby satisfying the perceived shareholder need for security, Yahoo must expand graphic ad placements opportunities and embrace the new social order.

Graphic ad placements are expanding with partnerships like eBay and an affiliation of local newspapers are providing opportunities for local flair. Restructuring the company to meet demand is one thing, but where is this perceived need for diversity coming from?