Known Problems with IP Targeting

What are the known problems with IP Targeting? Well let’s start off with the basics. According to the Interactive Advertising Bureau (IAB). IP targeting ads are sent to a user’s geographic location. As determined by his or her Internet Protocol (IP) address.

So every computer connected to the Internet has an IP address associated with it. Pretty cool and quite a lot of laptop and desktop screens to show advertisements!

It’s no wonder that IP-targeted advertisements are quickly on the rise and are here to stay! Imagine having the ability to place your ad in front of millions of households. Thus reaching an audience within the comforts of their home. For a fraction of the costs of radio, print or TV advertisements. IP targeting is the more cost-effective approach.

IP Targeting is a attractive form of engagement

The strategy to target households, Starbucks, airports, buildings is an attractive one. Compared to other forms of advertising it’s innovative, and a fresh approach to marketing. It is cheaper compared to other forms of mobile audience targeting. But I’ll get into the pros and cons in just one second.

For marketers, IP Targeting is a tool that is here to stay. In some cases, we are only looking to engage with a captive audience who is attending a trade show or conference. IP Target is a good way to deliver a timely and relevant message. In other cases, just adopting an IP-Target strategy may costs you more money in the long run.

When we recommend solutions for our partners. IP Targeting is one of the last strategies we will recommend. However, our partners prefer a more laser-targeted solution that we offer.

Known problems with IP Targeting

For those marketers smart enough to do your homework about IP Targeting. When you go to Google and search for known problems you get some decent results. There is really not a one-stop resource to cover all the issues. the following list is from our research.

First one is a big one. The numbers in IP addresses have no correlation with a specific geographical location.

The computer’s location cannot be determined by IP address alone. For that you need to team up with an IP intelligence firm that matches IP addresses to a physical location. Even with the help of a third party data provider you need to question the accuracy of their targeting.

Then there are the added costs of having your advertiser outsourcing this work. Such as to an IP intelligence firm. Believe me, you, will be paying for these extra costs whether you know it or not. The cheaper something costs the cheaper something is. There are also are limitations to the quality of data relative to advertiser intent.

Accuracy can be a challenge

Another known problems with IP Targeting relates to reaching actual people versus their IP addresses.

The inconsistency between the location of an IP address. And a consumer’s physical location. This cuts the precision and accuracy of IP Targeting. There are several factors that contribute to this difference. Some IP addresses change physical locations each month.

Since the IP address is a static number and not based on a phone number with a geographical area code assigned. The location of the IP address can be virtually anywhere.

Where you serve Advertisements

Let’s say you want to serve advertisements to employees at a specific organization. You need to keep in mind that some organizations have many locations around the country. If your servers are registered to a Louisville, KY location. And you want to target Humana. Serving content relevant to Louisville where Humana is headquartered is a great strategy. Especially for brands like Maker’s Mark or the Kentucky Derby.

If the organization you are trying to engage with is headquartered in Los Angeles. And you are working for that company in Louisville. Then getting advertisement for the L.A. Lakers won’t make much sense. Yet sometimes that is the case when adopting an IP Targeting strategy. Sometimes you are targeting a centrally located server.

If you are not too concerned with local relevant ads then IP Targeting is the way to go. The same goes with proxy servers, where some ISP’s use a small number of servers on a server farm like AOL does. Sometimes AOL customers may see content for business in northern Virginia. Where AOL is headquartered.

Advertisements based on location or for local events perform poorly with IP Targeting. The more granular the Direct Marketing Area (DMA) the less reliable IP Targeting can be. You can still deliver your messages but is the right message reaching the right audience?

Right message for the right audience

Do you even know if your message is reaching the right audience? Let’s say you’re a Democrat and your receiving political advertisements from GOP candidates. These candidates are running for office in Kentucky. Where you are connected to your IP Address on your Wifi.

When scrolling through Facebook from time to time, you will see these ads. However, everyone who knows you knows that you are definitely the wrong demographic. Especially for GOP served advertisements.

Second, what if you live in Indiana across the river from Louisville. When the wrong demographic see these ads, it’s not hard to think that the advertiser just wasted money.

Now you could make the argument that you might know someone living in Kentucky. And convince them to vote Republican when you’re a committed Democrat, but that’s a real stretch. Those offering an IP Solution might have matched the previous owner of your home. Who was in fact a Republican. Therefore included your IP Address in their advertisement campaign.

Even if adults who are registered Republicans are living in a household in Kentucky. How do you know that they are even logging on to their computer? Or a laptop? Or a mobile device while in that physical household location?

Imagine how hard it must have been for a political campaign to raise that money in the first place. Only to later discover they served ads to Democratic voters living in Indiana. They would be furious. Yet it happens all the time because the inaccuracy that IP Targeting presents.

There is a better way

Invest more into your mobile marketing efforts then a data-driven marketing strategy. When we consult with prospect in some cases they have been using a IP vendor. And have been greatly underwhelmed. The  promise was huge results. Yet they don’t see many new leads.

IP Targeting Vendors

When you match mobile devices to consumers it opens up the door to match their media consumption. As well as buying habits, buying behaviors, their passions and their affiliations. You can target more precisely and on the platforms you know they spend the most time on. Such as their mobile versus desktops and Facebook versus Candy Crush.

We encourage you to investigate a targeted audience on mobile strategy. We are more than happy to share more information with you about this.

If you find this article useful or have additional questions. Or questions about IP Targeting, please let us know in the comments below.

Bill Reynolds

I have been in marketing and technology for more than 20 years and have worked in many industries and worn many hats. From independent consultant, to cooking school, to establishing technology centers, it was a Spirit led adventure that landed me in the president & owner’s seat at Element 502. View all posts by Bill Reynolds