Yahoo will focus on personalizing content and advertising for its users on both its mobile and desktop platforms, CEO Marissa Mayer said Tuesday at the Goldman Sachs Technology and Internet Conference.
(Read More: Yahoo Taps Into Google's Ad Network to Make Money )
Mayer said that personalization is not only the future of search, but also the future of the entire user experience.
"All of our experiences across desktop and mobile will ultimately become more personalized," she said.
And included in tailored content is targeted advertising, which can also provide a positive user experience when executed right, she said.
"Yahoo is fundamentally an advertising company," she said.
(Read More: Google Makes Moves to Fix Mobile Ad Problems )
One way Yahoo can easily make the user experience more customized is by tapping into data provided by apps and services on users' smartphones. If a user grants Yahoo permission to use information—like location and places recently visited—that is captured and stored via programs on their smartphones, then Yahoo can better target content and advertising, she said.
Currently, Yahoo has about 200 million monthly active users on mobile.
Personalizing users' experience will hopefully help Yahoo conquer its biggest challenge, which is growing its usage, Mayer said.
"I'm not confused. Our biggest business problem right now is impressions. Can we grow ... we have to grow usage," she said.
—Technology reporter Jon Fortt contributed to this report