In digital marketing, email continues to be the most effective way of communicating with customers. But, to truly take advantage of this channel, marketers should know how email is delivered, and also how IP addresses work. One of the most common phrases that come up in email marketing is the term “dedicated IP.” In this post, we will be discussing what a dedicated IP is, its pros and cons, when to use one, and how to effectively handle it.
Understanding IP Addresses
Before we dive into dedicated IPs, let’s understand what an IP address is in the context of email marketing. An IP address is a numerical name for each device that connects to the internet, which determines where it is located. In email campaigns, the IP address is the sender from where the email originated. When your ESP broadcasts an email, it does so from a specific IP address.
Shared IPs and dedicated IPs are the two IPs that are used in email marketing.
Shared IP vs. Dedicated IP
A shared IP is an address that multiple people are using. A shared IP allows emails from different businesses (or individuals) to pass through the same address, if the company shares an IP. This setup saves costs and time, but can also cause deliverability problems when other recipients spam or do some poor emailing. Therefore, if their activities harm the reputation of the shared IP, then all users associated with it are affected.
By contrast, a dedicated IP is an IP address assigned to a single user or entity. That means that the email forwarding and the reputation of the dedicated IP are owned entirely by one person. When deploying an email campaign, a dedicated IP has a huge impact on deliverability, reputation, and overall campaign performance.
Advantages of a Dedicated IP
1. Improved Deliverability
The most obvious benefit of a dedicated IP is better email deliverability. Since senders’ reputation is based on sending behavior, businesses using dedicated IPs can ensure that their messages land in inboxes rather than spam folders. By constantly delivering the right quality emails, including keeping the mailing list clean, publishing relevant content, and adhering to frequency, you will be in a good position to keep your sender reputation intact.
2. Control Over Reputation
By owning your own IP, you have complete control over your IP’s reputation and can react immediately to issues. For example, when deliverability has dropped, you can check your work flow and make adjustments without worrying about what the other IP-sharing peers will do.
3. Customization of the Sending Volume
With a dedicated IP, you can configure the number of email emails you want to send without being bound by what other users are doing. Because you have control of the IP address, you can manage your campaigns from one-off emails to big campaigns.
4. Enhanced Brand Image
E-mailing from a dedicated IP can help improve the reputation of your business as it displays professionalism and high-level communication practices. The higher your emails show up in inboxes, the more prominent they are to your audience, increasing brand awareness and credibility.
5. Better Insights and Reporting
Having a dedicated IP allows you to get a better understanding of your email performance. This makes tracking bounce rates, open rates, and click-through rates much easier to analyze and adjust more closely.
Disadvantages of a Dedicated IP
1. Higher Cost
The downside to a dedicated IP is that it’s costly. In contrast to shared IPs, which are included in most ESPs packages, a dedicated IP might incur extra monthly charges. This might be a drawback for small businesses or those just getting started with email marketing.
2. Reputation Hits Can Be Costly
Although you own your own dedicated IP, any mistake on your email server is devastating for your credibility. When you don’t keep your mailing list tidy, or engage effectively, your IP gets a reputation for not being deliverable very quickly.
3. Initial Warm-Up Period
As you transition to a dedicated IP, there will be a “warm-up” routine. That means gradually increasing your sending count to get a good reputation from internet service providers (ISPs). This step may take weeks and deliverability may be erratic.
How to Use a Dedicated IP when?
What it would take to determine if you need a dedicated IP, though, depends greatly on the size, scope, and objectives of your email marketing campaign:
High Sending Rate: If you are sending hundreds of thousands or millions of emails, a dedicated IP is important for your sender reputation.
High Risk: If deliverability is a major issue in your business (transactional emails, deadline-sensitive offers), a dedicated IP can help you maintain a tight rein on your reputation.
Branding: Dedicated IPs are beneficial for brands that are well-established, and use a lot of email to promote their brand.
Potential for Spam: If your sector is plagued with spam reports or blacklists, a dedicated IP becomes essential to your sender reputation.
How to use a dedicated IP: Best Practices.
If you’re tempted to buy a dedicated IP for your email campaigns, here are some best practices to follow to make the most of it:
1. Implement a Warm-Up Strategy
Just as mentioned above, gradually ramping up your email volume using a warm-up plan is crucial. Start with lower email counts and build out over a couple weeks, using engagement statistics to help you along the way.
2. Maintain High-Quality Lists
Be sure to send emails only to subscribers who have signed up to receive your messages. Keep your lists clean and up-to-date on a regular basis to get rid of inactive members or bounced emails because excessive bounce rates will damage your sender reputation.
3. Monitor Performance Metrics
Tracking and analytics tools can track key performance metrics such as open, click through, and unsubscribe rates. These insights can guide your future plans and identify problems early on.
4. Authenticate Your Emails
Be sure to use authentication tools like SPF (Sender Policy Framework) and DKIM (DomainKeys Identified Mail) to add credibility to your email. This gives you extra protection and allows ISPs to verify the validity of your emails.
5. Stay Compliant with Regulations
Make sure you are following the CAN-SPAM Act or GDPR when it comes to emails to avoid a legal charge that might damage your reputation as a sender.
Conclusion:
Overall, an IP dedicated for email campaigns is a boon, allowing complete control over sending behavior and email reputation. It has its downsides — high prices and time to set up, but the long-term deliverability and brand recall benefits make it a popular choice for most companies. With knowledge about dedicated IP dynamics and best practices, marketers can optimize their email marketing strategy and make sure their messages reach where they’re supposed to — in the inbox.
