Yahoo is working on an initiative designed to improve its mobile presence, and help applications personalize user content based on recorded activity and statistics. Not much was disclosed about Yahoo!’s attempt to recapture a part of its formerly dominant share of the market, but it may be unveiled at the mobile World Congress in event held in Barcelona.

The interesting thing about Yahoo’s supposed plan is the understanding that personalized content will be a highly engaging way to connect users and advertisers.  Developing a portal around one’s personal use of web content is something Yahoo nearly perfected over a decade ago, and lost its footing to social networks, niche sites and specialized services that diminished the need for Yahoo’s portal effect.  Mobile is another chance for Yahoo to make strides within the personalized media sector, though it will still be a hefty challenge for the company, given the number of other services, new and old, that have the same idea.

“The software is derived from several features Yahoo already offers to its users, including one that shows different content to visitors of the Yahoo home page, depending on what Yahoo knows about their interests, according to the people familiar with the matter. For example, users of the Yahoo fantasy football or baseball programs might see more articles about sports when the visit Yahoo.com.”

Yahoo’s content initiative is led by VP of product development Irv Henderson and follows after similar initiates by multiple other companies and startups. Personalized content may be a good opportunity for Yahoo! to try and bring back its market on a new, mobile platform, though much more would be required to regain all the turf it has lost to Microsoft, Facebook and Google in the past few years.

Yahoo had its fair share of mobile news lately, though not all of them were positive. That includes the fact Yahoo Mail was discovered to be a reason for excess data usage on WP7, a fault which was attributed to both sides. On the flip side of the coin, we also covered AOL’s fresh out of the printer acquisition of the Huffington post for $135 million, a true testimony to the direction digital media is now headed.