Like every other technology, IP Geolocation databases have pros and cons. This is largely due to the fact that it involves the secret collection of personal information.
Typically gathered by a third party, this information is sold to businesses to create targeted advertisements.
This data can also be dangerous in the hands of criminals, hackers, and unethical businesses.
Here are some of the strengths and weaknesses of geolocation databases.
Strengths of IP geolocation database
Below are some of the strengths of the IP geolocation database;
Produced for free
The US Department of Defense developed the Google Positioning System (GPS) to obtain users’ IP addresses to create IP geolocation databases.
Because the system is easily accessible to all businesses, it’s practically free.
Businesses can also create more elaborate geolocation databases and add features they can monetize.
Every sector of the advertising industry relies on IP geolocation databases to produce effective marketing campaigns.
Businesses can now use a customer’s physical location and spending budget – all information got from the database – to market specific products and services.
For example, with geo advertising, fashion stores can effectively broadcast promotions for upcoming sales to customers who live in a particular area.
Businesses can use IP geolocation to track the location of their visitors and use the information to create a more personal and memorable user experience.
Visitors from different countries can now visit websites in their native language, as the web page has been programmed to translate its content based on the readers’ location.
This hyper-personalization enables businesses to provide customers with more effective products or services.
See how businesses unleash the power of IP intelligence on this website.
Weaknesses of IP geolocation database
Here are some of the IP geolocation database weaknesses.
Inaccuracy of data
GPS systems need signals from at least four satellites to function. If the system only makes contact with three satellites or less, the data produced would be inaccurate.
There might also be issues when buildings and trees obstruct signals.
Extreme atmospheric conditions, like storms, strong winds, and natural disasters can also contribute to signal damage.
In addition, navigational errors may be caused by outdated or inaccurate mapping technologies used with GPS.
High cost of maintenance
The maintenance of an IP geolocation database can be pretty expensive.
Most companies willing to build their own databases lack the necessary skills and resources to create and maintain a database.
While other companies may find using third-party platforms easier, doing so also requires a lot of funds for capital and day-to-day maintenance and expenses.
Bad business decisions
When a company relies on a geolocation database to make crucial decisions, and the database turns out to be inaccurate, it could cause a lot of damage to the company.
An inaccurate geolocation database can lead a company to make a wrong decision, which can, in turn, lead to a considerable loss.
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