From IP address basics to real-world business uses, here's what you need to know about IP geolocation.
What is an IP address?
An IP address (Internet Protocol address) is like a digital mailing address that identifies a device on the internet at a point in time. It allows data to move between your computer, phone, or smart device and the rest of the web.
You might assume an IP address works like a home address, fixed and uniquely tied to you. In reality, IP addresses are more dynamic. Your Internet Service Provider (ISP) may change your IP address periodically, and multiple devices can share the same IP address when connected to the same network using NAT (Network Address Translation) routers.
Because of this, an IP address is best understood as a temporary label for communication, not a permanent personal identifier. Tools across the web, including MaxMind's "Locate My IP Address" tool, can show you your current IP address, but that address may change over time or vary across devices.
There are two main types of IP addresses:
IPv4 (Internet Protocol version 4): The original standard created in the early 1980s. IPv4 addresses are 32-bit numbers, typically written as four numbers separated by dots (for example, 192.0.2.1). IPv4 supports about 4.3 billion unique addresses, which was enough in the early days of the internet but has since proven too limited as billions of new devices came online.
IPv6 (Internet Protocol version 6): Developed to solve the shortage of IPv4 addresses. IPv6 uses 128-bit numbers, written in hexadecimal and separated by colons (for example, 2001:0db8:85a3::8a2e:0370:7334). IPv6 ensures the internet can continue to scale.
Today, both IPv4 and IPv6 are in use. Many networks and devices support both, depending on compatibility and availability.
What is IP geolocation?
IP geolocation is a way of estimating where a device is located based on its IP address. Instead of giving an exact street address, it provides locations like the country, administrative subdivision (state or province), and city.
The accuracy of IP geolocation depends on the data behind it. Providers use information from internet service providers (ISPs), how networks are routed, and other commercial or public databases to make the best possible match between an IP address and a location.
You interact with IP geolocation every day, often without realizing it. It shapes which shows appear on your streaming service, sets the right currency in online stores, flags suspicious logins at your bank, and helps websites understand where their visitors are coming from.
How do businesses use IP geolocation?
IP geolocation shapes a lot of everyday digital experiences. Companies use it to:
- Personalize content: Streaming platforms like Netflix tailor their libraries to each region.
- Improve security: Banks and fintech apps flag suspicious logins from unexpected countries.
- Optimize marketing: E-commerce stores adjust currency, shipping, and offers to fit the visitor's location.
- Analyze audiences: Publishers and media companies track visitor regions to make smarter ad and content decisions.
- Enforce compliance: Online gambling, sports betting, and digital content platforms block or allow access based on local laws.
For developers, IP geolocation can be plugged into apps and sites through APIs and data services.
With the rise of AI, IP geolocation and network data is a key element in machine learning models for fraud detection, trust & safety, and compliance. This adds intelligence beyond location, spotting unusual patterns and creating smoother, safer digital experiences.
At its core, IP geolocation is a powerful foundational technology. It's not designed to track people to their specific homes, but rather map the digital world to the physical one by using the best possible privacy-preserving location signals. Every time an online store shows you the right currency, or a streaming service offers local content, or your bank's app flags a strange login, it's all powered by IP geolocation technology. It works by mapping networks to the right mix of location signals.
As the internet continues to grow and evolve, IP geolocation remains a vital tool. It provides the essential location context needed to create safer, more personalized, and more relevant digital experiences for everyone.