Internet Protocol is a numerical address given to every device to identify it on a given network. Whenever you try to visit a website after entering the address on the address bar, quite a bit happens behind the scenes. For a real-world example, imagine that several companies share the same office area. Then the address for all these companies will be the same, which means multiple websites can share the same IP address and dedicated IP is like a single company, is using the entire area. Then that single company will have that particular address.
Let’s compare both Shared and Dedicated IP:
Shared IP
One of the major advantages of shared hosting is there is no additional cost and also you can set up your website quickly. For a beginner in business, shared IP is the best choice. You can start your business within the budget.
The main problem with shared IP is you are using the same mailing channel and hence your messages will be in the queue according to the priority. This will not become an issue on a regular basis but occasionally, some messages will take a delay in delivery. Another issue is with branding. Since your sending channel is shared you cannot brand the sending domain for yourself.
Dedicated IP
Dedicated IPs are the great way for email marketers to build and maintain their own IP and domain reputation. In dedicated IP one sender will own that particular IP. The reputation purely depends upon you. You have to make sure that you are using good quality data. No other senders will make any negative influence on your marketing initiatives. In dedicated IP there are no worries about queues. No one else other than you will send through your IP. It will allow you to take the full control over your emails sending. This will give you better delivery rates. You can make everything point to you, so you can take care of your brand.
Let us conclude now. If you are running a small business, you are contacting the customers occasionally with some kind of emails and newsletters or you are just starting with email marketing then you can use shared IP. On the other side if you have a significant size list and you are contacting your customers on a regular basis and also you want to keep up your brand reputation then go with Dedicated IP.