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Logistic Regression

Logistic Regression

Definition

Logistic Regression is a statistical model used in machine learning to predict binary outcomes (e.g., yes/no, open/bounce, convert/not convert). It estimates the likelihood of an event occurring by analysing relationships between input features—such as time on page, click-through rate, or user demographics—and a binary response.

In content marketing, SEO companies use logistic regression to determine whether a website visitor is likely to become a lead based on on-site behaviour. A performance marketing agency might deploy it to analyse which ad impressions result in form submissions. Similarly, a digital marketing Auckland firm could use it to predict which email recipients will open newsletters or respond to offers.

Unlike linear regression, which predicts continuous outcomes, logistic regression provides a probability between 0 and 1. This makes it ideal for targeting, personalisation, and lead qualification strategies.

Example Scenario

A performance marketing agency wants to improve lead quality from paid campaigns. Using logistic regression, their data team models the probability of conversion based on input features: time spent on landing pages, traffic source, CTA clicks, and device type. The model predicts that mobile users who visit for over 60 seconds and click a CTA have a 74% probability of converting. Based on this, the agency targets similar users and increases conversion rates by 31% in two weeks.

Formula

Formula: P(Y=1)=11+e−(β0+β1X1+β2X2+⋯+βnXn)P(Y=1) = \frac{1}{1 + e^{-(\beta_0 + \beta_1 X_1 + \beta_2 X_2 + \dots + \beta_n X_n)}}P(Y=1)=1+e−(β0​+β1​X1​+β2​X2​+⋯+βn​Xn​)1​

Explanation:

  • P(Y=1)P(Y=1)P(Y=1): Probability of a positive event (e.g., a conversion)
  • β0\beta_0β0​: Intercept
  • β1,β2\beta_1, \beta_2β1​,β2​: Coefficients for features
  • X1,X2X_1, X_2X1​,X2​: Features such as time on site, clicks, etc.
FeatureCoefficient (β)Value (X)Contribution (β×X)
Time on Page (minutes)0.6521.30
Clicked CTA (yes=1/no=0)1.2011.20
From Mobile Device-0.401-0.40
Total2.10

Final probability: P = \frac{1}{1 + e^{-2.10}} ≈ 0.89 \text{ (89% chance of conversion)}

5 Key Takeaways

  1. Logistic Regression predicts binary outcomes, such as whether a user will convert.
  2. It uses behavioural and demographic inputs to produce probability scores.
  3. Marketers can segment audiences based on predicted outcomes.
  4. It’s ideal for campaign targeting, lead scoring, and A/B test evaluation.
  5. Results help shape personalised content flows that improve performance.

FAQs

What does Logistic Regression predict in marketing?

It predicts the probability of binary outcomes—like email opens or conversions—based on past behaviour.

How does an SEO company benefit from Logistic Regression?

It helps segment users based on search activity and optimise landing page structures accordingly.

Is Logistic Regression better than linear regression for marketing?

Yes—for binary decisions like “yes/no” or “convert/not,” logistic regression provides more accurate insights.

How does a digital marketing Auckland team apply this?

They use it to determine which user behaviours lead to newsletter subscriptions or purchases.

Can small businesses use Logistic Regression?

Yes. Many CRMs and marketing platforms offer simplified logistic regression tools for data-driven decisions.

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