A practical guide to help growing senders decide
If your business sends thousands of marketing emails a week, you may have heard that switching to a dedicated IP can improve deliverability. But is it really worth the cost and effort and how do you know if you’re ready?
In this guide, I will break down the difference between a shared and dedicated IP for sending your email marketing. Helping you decide whether making the move to a dedicated IP is the right fit for your business based on your send volumes, goals and challenges.
What is a dedicated IP for Email Marketing?
In basic terms an IP address is a unique numerical identifier assigned to every internet enabled device. In the context of email marketing, an IP address lets inbox providers (Gmail, Outlook, Yahoo etc) know where your email is coming from. And you have a choice to send your marketing emails from either a shared or dedicated IP.
By default you’ll usually enter onto a shared IP provided by your Email Service Provider (ESP) or Marketing Automation Platform, unless otherwise specified.
A shared IP means your emails are sent from an address shared by a group of other users on the same platform. Think of it like a house share situation, where if one of your housemates throws a noisy party that upsets the neighbours, you’ll be impacted too.
Whereas, if you choose a dedicated IP, it will be the equivalent of owning your own house, where you’re the only one with the keys – in control of your destination. You’ve got full control over this IP and can build your sender reputation over time, often leading to better deliverability as you aren’t impacted by the actions.
Shared Vs dedicated IP: Quick comparison table
| Feature | Shared IP | Dedicated IP |
|---|---|---|
| Usage | Shared with multiple businesses | You only |
| Sender Reputation Control | Shared – You’re impacted by the sending practices of others | Full control – Your reputation is based solely on your behaviour |
| Ease Of Troubleshooting | Difficult – Harder to isolate the cause of a deliverability problem due to lack of visibility around the actions of others using the same IP | Easy – All the data is yours, making it easier to pinpoint the source of any deliverability issues |
| Authentication Alignment | Usually relies on ESP’s domain; SPF/DKIM may pass but not align with your domain | Easier to achieve full SPF and DKIM alignment using your domain, which strengthens DMARC compliance and improves inbox placement |
| Cost | Included – With your ESP plan (usually for free) | Additional cost – Usually billed monthly or annually via your ESP |
| Set Up Time | Immediate – Ready to use | Longer – Warm up required to build IP reputation |
| Best For | – Micro or Small businesses – Infrequent/seasonal senders – Low volume senders (less than 100k per month) | – Medium or Large Businesses – Established brands with mature email programs – Regular senders (2-3 emails per week) – High volume senders (100k per month+) – Senders that want to split mail streams (e.g. transactional & marketing) |
Is a dedicated IP worth it? Ask yourself these questions
Are you sending over 100,000 emails per month?
If yes, you’re likely eligible to make the switch to a dedicated IP. However, check with your provider to make sure you meet their individual requirements.
Are you planning to increase your send volumes in the near future?
If you know your send volumes are about to increase to over 100,000 emails a month – maybe due to a merger, acquisition or more frequent email campaigns, it’s worth planning ahead and investigating a dedicated IP.
Do you have the time and resources to conduct an IP warm up?
A dedicated IP address requires some hard work upfront, better known as an “IP warm up”. This will mean your team will need some time to plan their IP warming approach and execute it. Allowing a little extra for any unforeseen challenges along the way.
Do you want full control over your sender reputation?
With a shared IP, you’re at the mercy of the actions of others. Of course, this works both ways – good senders will help to protect your reputation and poor senders could damage it, impacting your deliverability and inbox placement. If you want to be able to steer your own ship then a dedicated IP will be the better option.
Are you experiencing any deliverability issues?
If you’re seeing a decline in open rates, a drop in inbox placement, or anything else that looks unusual — and you’ve ruled out content, timing, or audience targeting as the cause — it could be linked to a poor sender reputation. On a shared IP, this may be out of your control, especially if other senders are following poor practices that affect overall performance.
Of course, it’s difficult to prove this indefinitely. But if you’ve exhausted your options elsewhere, switching to a dedicated IP puts you in a better position to manage your own reputation and identify deliverability issues with more accuracy.
Are you sending consistently and on a regular cadence?
Dedicated IP’s are best for senders who email their audiences on a regular basis and at fairly consistent volumes. Sending spikes in volumes or long gaps in sending behaviour are not favourable for dedicated IP users.
Do you want to separate your marketing communications from your transactional emails?
If so, hosting both types of communication on separate dedicated IP’s could be the way forward. Or you could move your transactional email sends to a dedicated IP and keep your marketing ones on a shared IP (particularly if your marketing volumes are low) – this protects your most crucial communications from being impacted by your promotional content.
Pros and cons of a dedicated IP
Pros
✅ Able to manage your own sender reputation
✅ Easier to identify and fix deliverability issues
✅ Consistent delivery rate (when following best practices)
✅ Can be used to protect important mail streams from potential contamination (e.g. transactional from promotional content)
✅ Able to achieve SPF and DKIM alignment with full control of your sending domain and set up.
✅ Can apply for Validity’s Sender Certification, an exclusive inbox allow-list.
Cons
❌ Requires effort and time to warm up
❌ Needs a consistent and high volume of sends
❌ A regular investment (usually paid annually or monthly via your provider)
What’s right for you?
Switching to a dedicated IP could be a smart move – If you’re sending over 100,000 email marketing messages a month on a regular basis, with no large spikes or quiet spells. Now could be the time for your business to make the switch. This will give you more control over your sender reputation and help to improve your email deliverability (if you follow best practices of course!).
Speak to the Account Manager for your ESP/Marketing Automation Platform about a dedicated IP.
Still unsure? I help ecommerce brands assess their email infrastructure and deliverability setup. If you’d like a second opinion, feel free to get in touch.