As technology evolves, we as marketers are able to offer our clients new ways to find their target audience and share their message with them–and IP targeting is a perfect example. For businesses who wish to cast a narrow net in a broad sea of customers, IP targeting is one solution that allows advertisers to do just that.
How does IP targeting work?
IP targeting begins much like a direct mailer might– a list of physical addresses you wish to target. These addresses are then mapped to the Internet Protocol (IP) addresses that correspond to the user’s home. Armed with these IP addresses, you can then send targeted display messages to the devices of those users that are matched–including desktop computers, smartphones, and tablets.
What are the benefits of IP targeting?
Advertisers that use IP targeting often see higher than average click-through rates than other advertising methods since they can customize messages and make their ads more relevant to their targeted users. Because IP targeting works on a very granular level and is able to consistently target a small set of users and devices (whoever is online on a specific IP address), this technology also enables new strategies like repetition and frequency marketing, both of which can leverage user-targeting to market to a specific set of users that are more likely to convert, or just build up brand familiarity with an existing set of clients.
Likely one of the most valuable benefits of IP targeting is not in the targeting method itself, but in its conversion tracking capabilities. Through what is called a match-back analysis, advertisers are able to compare new customer data with targeted segments to help provide ROI. Therefore, not only are you able to review some of the standard metrics you’re used to, such as clicks, impressions, and click-through rate (CTR), but you’re also able to associate new sales (conversions) as a result of your IP targeting campaign.
What are the pitfalls of IP targeting?
IP targeting is not a perfect method, as there can be inconsistencies with the IP address location. For instance, if you’re targeting a large company with multiple locations that work off a single global IP address, you won’t be able to target only those in a single location. Another consideration is that while you may be able to place your ad in the home or business that you intended to target, there is no guarantee that your message will reach the decision maker. Ultimately IP targeting can help you avoid fraudulent traffic that you may encounter with other digital marketing platforms, however you should question any IP targeting firm that claims to offer 100% accuracy.
IP targeting, when implemented correctly, can help businesses aim their marketing message to a more precise audience. If you’d like to learn more about IP targeting and see if it’s the right fit for your business, contact Pulse Marketing Agency today to schedule a free 30-minute consultation.