A dedicated IP address is assigned exclusively to a sender. Therefore, said company would be the only brand that can send from that IP address. As a result, a dedicated IP address won't be affected by other senders and they will have control over their reputation.
Why this is useful
The major advantage of using your own IP address (or addresses) is that you have control of your reputation and ultimately your delivery. ISPs have a tendency to give “preferential” treatment if the email originating from an IP address is static, that IP has been sending for a long time and that it has a good reputation. If they see multiple senders using the same IP address, they have no choice but to take a closer look at the email being sent as the sender keeps changing.
Dedicated IP Requirements
For a client to qualify for a dedicated IP address, certain criteria must be met. Dedicated IPs may not be suitable for everyone. If the sender does not meet the criteria (below), their reputation will be poor, they will not likely be able to deliver emails effectively, and will likely be placed back on the shared pool.
- Open rate of at least 15%
- Hard bounce rate of no more than 5%
- Spam rate of no more than 0.1%
- Unsubscribe rate of no more than 1%
- A minimum monthly volume of 30,000 emails
- A maximum daily volume of 1,000,000 emails (per IP)
- Client must send on a consistent basis (at least once per week)
Dedicated IP addresses: best practices
Sending regularly, adhering to best practices, and having a high level of engagement with a low bounce rate and complaint rate will ensure better delivery on your own IP.