“IP” stands for “Internet Protocol” and an “IP Address” refers to a number that has been assigned all devices using a specific network. In the online marketing world, marketers can obtain a list of IP addresses and learn where their web traffic is originating. This can be very helpful in discerning visitor traffic and whether or not you’re reaching your desired audiences. For example, if you can only ship your products within the continental U.S., you better hope your sponsored ads aren’t getting traffic from Germany and wasting your clicks.
Although you need a large amount of information to make the most informed conversion optimization decisions (audience segmentation, demographics, behavior, etc.), IP addresses offer useful insight that should be part of any web analytics report.
