Our analysis shows that IP Targeting only reaches 30% of households. Why?
A little background on IP Targeting: Every device on a computer network has an Internet Protocol (IP) address. It’s just like a phone number, telling other computers how it can be reached. Your IP address is usually based on a real-world location. Google might use your IP address to guess where you are and give you local results. For example, Google could use your IP address to give you the weather forecast for the town you're in when you search for weather.
Your IP address will be a number, like 172.16.254.1 or 2001:db8:0:1234:0:567:8:1.
This string of numbers is a code that can decipher your exact location by looking at your router, in your home or the wifi network where you work. The IP address is hard coded and in integral piece of the hardware that runs the internet. But thats the problem, its hard coded. You can't opt-out of an IP address... so this is where privacy becomes a BIG issue.
U.S. privacy laws prohibit companies from matching an IP address to the user’s PII (Personally Identifiable Information), as this is considered a form of cyber stalking. In addition, to questions around regulation and new state laws such as CCPA have forced many "hide" the true IP address from advertisers.
There are still several ways IP addresses can be obfuscated to a neighborhood, a different state, or a completely different country.
Dynamic IP Allocation – Some ISPs and networks use dynamic IP allocation to assign IP addresses to their users. Meaning that a single user could have a different IP address every time they use the internet. This affects the accuracy of an IP database used by marketers.
Proxy Servers – ISPs sometimes assign a single or a small number of servers to their users, which results in more than one household/business having the same IP address. One of the most cited examples of this happening is AOL. No matter where you live if you are using AOL’s internet services, your IP address will be linked to their servers in Virginia. This could mean that while you may live in Massachusetts, you could see ads for events taking place in Virginia.
Centrally Located Networks – Organizations with locations in multiple cities will often have their computer networks mapped to a centrally located IP address. I actually had this happen to me in a previous job. While living in Las Vegas, NV I was always being served ads for places in Los Angeles because of how my company’s network was set up. My IP address made it look like I was physically in Los Angeles and not Nevada.
The Ad Exchange Blocks the IP Address - Advertisements online are bought via an ad exchange (an open source of ads that top publishers "plug" into so they can monetize their sites). To self regulate, some ad exchanges simply blocking IP address, making IP targeting useless.
How does Electable Advertising address the limitations of IP Targeting?
Electable's Convergence technology, does not use just one source of data we utilize a cross device graph to map all digital devices utilizing IP, Cookies, Ad ID (unique identifier used in phones, connected TV's tablets), SDK - Latitude & Longitude (opt in from mobile phones).
To learn more about our technology, contact us at info@electableadvertising.com
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