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Data & identity · also called IP

IP address (in advertising)

In advertising, an IP address is the network address a device uses online, used for rough geolocation, household matching, frequency capping and fraud detection, and treated as personal data in many laws.

The short answer, from the AdTech Sumo glossary

Every device connecting to the internet has an IP address, typically assigned by its internet provider or mobile carrier and often shared by everyone in a home. Ad systems see it in every request.

IPs have several uses in advertising: approximate geotargeting (country and city), linking devices on the same home network for household targeting and probabilistic matching, and above all fraud detection. IP reputation, known data-center ranges, proxy and VPN detection and unusual volumes per IP are core GIVT and SIVT signals.

IP addresses are legally sensitive. The EU's top court ruled in 2016 that dynamic IP addresses can be personal data, and they are treated as such under GDPR; California's CCPA / CPRA lists IP addresses as identifiers. Technology is also reducing IP usefulness: Apple's iCloud Private Relay, VPNs, and carrier-grade NAT share or hide addresses. In SSAI and CTV, the IP of the viewer's device must be forwarded by the server, which is exploited in SSAI spoofing.

Think of it like this

An IP address is like a building's street address: it tells you roughly where a letter came from, but not which flat or person sent it.

An example

A fraud vendor sees one IP in Frankfurt generating ad requests for 3,000 "different" smart TVs in an hour; normal homes show fewer than 10, so the traffic is flagged.

Related terms

Sources: GDPR Article 4: definitions, California Attorney General: CCPA, MRC Invalid Traffic Detection and Filtration Guidelines Addendum (2020 update)