How Accurate Is IP Address Location? Geolocation Information & More

IP address location data is constantly changing, making accuracy a perpetually moving target. Getting it right, however, makes all the difference for companies that want to ensure positive customer experiences, compliance with regulatory requirements, and better cybersecurity intelligence. 

Explore how IP address geolocation is determined, the factors that influence its accuracy, and how that accuracy improves business outcomes.

How Is IP Geolocation Determined?

IP addresses serve as unique digital identifiers for internet-connected devices and are assigned by the Internet Assigned Numbers Authority (IANA) and distributed by Regional Internet Registries (RIRs) to ISPs and various organizations. Like a physical address, an IP address points to a specific location in the online world. These IP addresses are documented in public WHOIS records, which sometimes includes information like geographic location and ownership details.

When an internet device connects to a website via an ISP, it shares its IP address with that site. Depending on the IP address data provider that site is using, geolocation is determined by the WHOIS information, along with routing information and other relevant data. This process, however, is imperfect, given that WHOIS location data is unregulated and provided voluntarily by ASNs.

At IPinfo, we determine IP geolocation differently. Our proprietary probe network uses ping measurements from multiple server locations, resulting in a robust and dynamic internet map. For example, a user in Texas might show up from other IP data providers as being in New York. Our servers ping individual IP addresses to see how long they take to send us information back, and then we measure the round trip time (RTT). By analyzing latency patterns, we triangulate the most probable physical location of an IP address. This method allows us to correct inaccuracies common with other providers—for instance, accurately identifying a user in Texas when others might incorrectly place them in New York.

How Accurate Are IP Address Locations?

The accuracy of IP address locations relies on the quality of the data that the IP geolocation service uses. Thus, geolocation accuracy varies depending on the IP data service provider. Some geolocation services get their data from other IP address databases while others collect data directly from ISPs and use crawling, traceroutes, and geofeeds. 

IP geolocation services sometimes use other IP address databases, which they buy or borrow from specialist companies. These databases can be less expensive, but they’re often also outdated and inaccurate. 

Other data providers gather data from crawling, traceroutes, and geofeeds. They also gather data from WHOIS geolocation data. While this data can be better, data providers are still at the mercy of slow updates and imprecise data. 

IPinfo began by providing API access to existing IP databases, but soon realized these sources lacked the geolocation accuracy our clients needed. Listening to early client feedback, we made data accuracy our main focus. By investing heavily in research and developing our own Probe Network, IPinfo has an ultimate source of truth for ensuring IP geolocation accuracy. This data is complemented by: 

• WHOIS data, which shares a snapshot of a particular place and time and relies on organizations to provide regular updates and accurate information
• Geofeed data, which offers more broad data 
• Corrections, which customers, organizations, and users submit

All of this information combined results in IPinfo providing highly accurate IP geolocation data trusted by industry leaders worldwide. Our commitment to data quality and continuous verification ensures that businesses can depend on us for reliable and up-to-date geolocation information.

Factors That Influence the IP Location Accuracy

IP addresses are not quite as simple as physical addresses due to a variety of factors.

 Proxies and VPNs

Virtual private networks (VPNs) provide users with a private way to browse the internet by loaning them temporary IP addresses. This process not only masks their actual IP address, but also hides location details, ensuring their real geographic location remains hidden. As a result, websites and ISPs are unable to accurately track or monitor the user's actual geolocation. 

Similarly, proxies serve as intermediaries to obscure a user’s true geolocation. By routing internet traffic through a different IP address, proxies also help mask the user's original location. A user in Paris, for example, could appear to be from Las Vegas.

Types of IP Address

The type of IP address assigned to a device significantly impacts the location data that can be linked to it. Most internet users have dynamic IP addresses, which are temporary and tend to change regularly. This frequent updating of IP addresses means that a user’s online footprint can shift with each change in IP, affecting geolocation data if your IP data provider isn’t refreshing data daily.

Static IP addresses operate differently. These are fixed addresses assigned to a device or network, and they remain constant regardless of how much time passes or whether the device disconnects and reconnects. Static IP addresses are more commonly used by businesses or institutions that require a consistent IP address for various reasons, such as hosting websites, running servers, or managing remote access to secure networks. Because they do not change, static IP addresses are often easier to trace to a specific location or entity.

At IPinfo, our IP tags help contextualize the type of IP we’ve identified with our data.

Residential IP Address

ISPs assign residential internet users with residential IP addresses, meaning that those IP addresses are directly linked to specific, individual households. Residential IP addresses are often also dynamic. Dynamic IP addresses periodically change, which can affect geolocation accuracy for IP data service providers.

 Dynamic IP

A dynamic IP address is designed to change on a regular basis — devices such as phones, laptops, tablets, and home routers do not keep the same IP address permanently. Instead, these IP addresses are periodically reassigned, resulting in less precise geolocation data. 

Mobile Phone

A mobile phone IP address is assigned by the network provider each time a device connects to the internet. Since mobile IP addresses are dynamic and change frequently based on cellular towers rather than exact coordinates, they provide only an approximate location, affecting precise location accuracy.

VPN or Proxy

These IP addresses are temporarily assigned by a VPN or proxy server, concealing a user’s real IP and location. By routing traffic through a different region or country, they can alter location data, making it appear as though the user is browsing from somewhere other than their real location.

Internet Service Providers (ISP) Data

ISPs play a key role in affecting the accuracy of IP location data. Their databases of IP addresses grow longer every day as more users get online. ISPs assign IP addresses based on their geographic regions, which can influence where a device appears to be located online. Many ISPs also use dynamic IP addresses that change periodically, leading to fluctuations in geolocation accuracy. Additionally, ISPs may aggregate IP addresses across multiple regions, which can further obscure precise location data. As a result, geolocation information is constantly evolving.

Network Infrastructure

Due to the way IP addresses are assigned and routed, network infrastructure can impact IP location accuracy. The configuration of networks can result in multiple users sharing the same IP address or using addresses that correspond to a different geographic area. 

For example, data centers and cloud services often utilize centralized IP addresses that may not reflect the actual locations of end users. Additionally, routing paths can introduce delays and inconsistencies in geolocation data, as packets may cross multiple networks before reaching their destination. These complexities make it harder to determine a user’s true geographic location.

Ways IP Address Location Data Is Used

Organizations increasingly leverage location data, like using an IP geolocation API, to enhance customer relationships. By personalizing content based on geographic location, optimizing marketing campaigns for specific regions, and strengthening security by verifying user locations, businesses can create more relevant and compliant experiences. Additionally, they can ensure content is delivered in users' preferred languages and currencies for greater engagement.

Targeted Advertising and Marketing

IP location information is a powerful asset for targeted advertising and marketing strategies. Using IP location data, organizations can tailor their campaigns to effectively reach specific audiences, ensuring that promotions resonate with their intended users and customers and boosting overall engagement. 

Here are some ways IP location can be used in advertising and marketing:

• Targeted paid ad campaigns based on geographic regions
• Dynamic content delivery that personalizes website experiences based on location
• Localized promotions and discounts specific to an area
• Enhanced audience segmentation, by location, for more effective outreach
• Improved physical event targeting for ticket sales
• Regional analytics to measure campaign effectiveness in a particular area

Improved User Experience

When companies have data regarding their users’ locations, they can offer a better user experience. By understanding where users are located, businesses can tailor content, offers, and services to meet the specific needs and preferences of people in different countries and regions. 

Users may receive localized promotions, relevant product recommendations, or access to nearby events, making their interactions more meaningful. Personalized content delivery can adapt to language and currency preferences, further enriching user experience. This level of customization not only improves customer satisfaction, but also fosters brand loyalty, as users feel more understood by companies.

Fraud Detection and Prevention

IP location accuracy plays a crucial role in empowering businesses to better respond to fraud risks by offering insights into user behavior and location patterns. Here are some of the ways that businesses can use IP location data for fraud detection and prevention: 

• Develop internal fraud risk models by establishing patterns of legitimate user behavior 
• Pinpoint orders from suspicious locations and payment discrepancies from different locations
• Block traffic from high-risk locations
• Keep users' accounts secure by notifying them of login attempts from unfamiliar locations
• Enforce content restrictions based on users' locations
• Identify unusual transaction patterns associated with high-risk regions or masked IPs

Leveraging IP location accuracy strengthens overall security measures, enabling businesses to get ahead of risks, prevent costly breaches, and foster user confidence in online interactions. Enhanced fraud prevention also promotes long-term customer trust, as users feel safer engaging with brands that prioritize security.

Location-Based Services

IP address location accuracy is invaluable for location-based services, allowing them to market directly to their target audience with relevant, localized content. By understanding users' geographic locations, companies can tailor promotions, events, and product offerings that they actually qualify for. This precision helps drive engagement, as users are more likely to respond to offers that are nearby. 

Accurate IP location data also enables companies to refine ad targeting, reduce wasted ad spending, and boost ROI by ensuring that marketing efforts reach those most likely to convert. Users also feel more connected to brands that understand and cater to their preferences, improving customer relationships.

Compliance With Legal and Regulatory Requirements

IP location accuracy is essential for ensuring compliance with legal and regulatory requirements, particularly when handling data, financial transactions, or restricted content. IP location data can be used in compliance and legal situations such as:

• Ensuring GDPR compliance by identifying EU-based users
• Complying with the CCPA by identifying California-based users
• Restricting content in regions with specific censorship laws or different licensing agreements
• Limiting access to financial services based on regional regulations
• Preventing gambling activities in restricted locations
• Enforcing sales tax based on user location

By accurately identifying a user’s geographic location, businesses can enforce region-specific policies, adhere to data privacy regulations, and restrict access to sensitive information based on region.

IP-Based Access Control

IP location data helps companies secure their digital infrastructure by verifying that access requests only come from authorized locations. IP-based access control can include: 

• Investigating sessions to see if an IP changes location frequently or if there are multiple IPs using an account at one time
• Detecting suspicious requests for sensitive information 
• Enforcing content restrictions or limiting access based on location

Use IPinfo’s IP Geolocation Data for More Accurate Targeting

IPinfo offers the world’s most accurate and detailed IP data, establishing the industry standard in data excellence with unparalleled geolocation data derived from our proprietary probe network. Since 2013, we’ve empowered millions of users, enabling them to enhance and optimize digital experiences across a diverse array of industries.

Given the numerous evolving factors that affect IP geolocation data, our commitment to maintaining the highest levels of data accuracy is always evolving, too. Our innovative probe network grants us unprecedented reach, allowing us to gather real-time geolocation data from across the internet. This data undergoes rigorous analysis and validation to ensure its reliability and precision. Our team works full-time to research, test, and verify the quality of our data, ensuring that our clients receive the most accurate information available.

This highly contextualized data is available in several formats, including an API, a database, or seamless integrations with leading cloud platforms, providing our users with flexibility and ease of use.