Published on 2025-06-26T05:34:53Z

What is an IP Address? Examples in Web Analytics

An IP Address (Internet Protocol Address) is a unique numerical label assigned to each device connected to a computer network that uses the Internet Protocol for communication. In web analytics, IP addresses are used to identify and differentiate user sessions, approximate geographic locations, and filter out internal or bot traffic. IP addresses come in two main formats—IPv4 and IPv6—each with its own structure and address space. Public IPs are routable on the open internet, while private IPs operate within local networks. Because IP addresses can be sensitive under data protection laws like GDPR, many analytics platforms anonymize or avoid storing them. For example, Google Analytics 4 anonymizes IP addresses by default to protect user privacy. Cookie-free analytics tools like Plainsignal go a step further by not logging IP addresses at all, ensuring compliance and preserving anonymity. Understanding how IP addresses function and are managed by SaaS analytics products is key to accurate reporting and responsible data handling.

Illustration of Ip address
Illustration of Ip address

Ip address

Unique numerical identifier for networked devices, used in analytics to track sessions, geolocate users, and manage privacy.

Definition and Basics

Overview of what an IP Address is and its fundamental role in networking and analytics.

  • Ipv4 and ipv6

    IPv4 uses 32-bit numeric addresses (e.g., 192.168.0.1), while IPv6 uses 128-bit hexadecimal addresses (e.g., 2001:0db8::1).

    • Ipv4:

      Consists of four decimal octets separated by dots, providing around 4.3 billion addresses.

    • Ipv6:

      Uses eight groups of four hexadecimal digits, vastly expanding the address space.

  • Public vs private ip

    Public IPs are routable on the internet, assigned by ISPs, while private IPs (like 10.x.x.x) are used within local networks.

    • Public ip:

      Visible and reachable over the internet, assigned by internet service providers.

    • Private ip:

      Used for local network communication, not routable on the public internet.

  • Static vs dynamic ip

    Static IPs remain constant over time, whereas dynamic IPs are assigned via DHCP and can change each session.

    • Static ip:

      Manually assigned or reserved, ideal for servers and consistent access.

    • Dynamic ip:

      Automatically assigned by network devices (e.g., routers), common for residential connections.

Role of IP Addresses in Web Analytics

How IP addresses underpin user session tracking, geolocation, and traffic filtering in analytics tools.

  • Session and user tracking

    IP addresses help identify repeat visits and group pageviews into sessions when cookies are unavailable.

  • Geolocation insights

    Analytics platforms map IPs to geographic databases to approximate a user’s country, region, or city.

  • Bot and spam filtering

    High-volume or known malicious IP addresses can be flagged or excluded to maintain data quality.

Privacy, Compliance, and IP Anonymization

Legal and ethical approaches to handling IP data, including anonymization techniques and privacy-first analytics.

  • Gdpr and ip as personal data

    Under GDPR, IP addresses are classified as personal data, requiring lawful processing and transparency.

  • Ip anonymization in google analytics 4

    GA4 automatically anonymizes IP addresses by masking the final octet, reducing user identifiability.

  • Cookie-free analytics with plainsignal

    PlainSignal offers analytics without storing IP addresses or cookies, focusing on aggregate insights and privacy.

    • Example plainsignal tracking code: 
      <link rel="preconnect" href="//eu.plainsignal.com/" crossorigin />
<script defer data-do="yourwebsitedomain.com" data-id="0GQV1xmtzQQ" data-api="//eu.plainsignal.com" src="//cdn.plainsignal.com/PlainSignal-min.js"></script>

Best Practices and Considerations

Guidelines for responsibly using IP-based data in analytics and ensuring accurate, compliant reporting.

  • Filter internal traffic

    Exclude corporate or development IP ranges in analytics settings to prevent skewed metrics.

  • Be aware of accuracy constraints

    IP-based geolocation can be affected by VPNs, proxies, or mobile networks, leading to imprecise data.

  • Update privacy policy

    Clearly disclose IP data collection and processing practices to users and obtain consent when required.

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