Web Reference: Jul 14, 2025 · One powerful technique for this is Target Encoding, and in this blog, we’ll break it down in a way that’s easy to understand, even if you’re just starting out. Target encoding, also known as mean encoding or impact encoding, is a powerful feature engineering technique used to transform high-cardinality categorical features into numerical representations by leveraging the information contained in the target variable. The encoding scheme mixes the global target mean with the target mean conditioned on the value of the category (see [MIC]). When the target type is “multiclass”, encodings are based on the conditional probability estimate for each class.
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04 Target Encoding Mean Encoding Net Worth 2026: Salary, Income & Wealth Net Worth & Biography

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Understanding Target Encoding for Categorical Features
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Last Updated: April 13, 2026

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