Classification of Predicting Customer Ad Clicks Using Logistic Regression and k-Nearest Neighbors

Abstract

Nowadays, conventional marketing techniques have changed to online (digital) marketing techniques requiring internet access. Online marketing techniques have many advantages, especially in terms of cost efficiency and fast information delivery to the public. Therefore, many companies are interested in online marketing and advertising on social media platforms and websites. However, one of the challenges for companies in online marketing is determining the right target consumers since if they target consumers who are not interested in buying the product, the advertising costs will be high. One use of online advertising is clicks on ads which is a marketing measurement of how many users click on the online ad. Thus, companies need a click prediction system to know the right target consumers. And different types of advertisers and search engines rely on modeling to predict ad clicks accurately. This paper constructs the customer ad clicks prediction model using the machine learning approach that becomes more sophisticated in effectively predicting the probability of a click. We propose two classification algorithms: the logistic regression (LR) classifier, which produces probabilistic outputs, and the k-nearest neighbors (k-NN) classifier, which produces non-probabilistic outputs. Furthermore, this study compares the two classification algorithms and determines the best algorithm based on their performance. We calculate the confusion matrix and several metrics: precision, recall, accuracy, F1-score, and AUC-ROC. The experiments show that the logistic regression algorithm performs best on a given dataset.