A dedicated IP is a unique IP address assigned to your web hosting account. Only you have the right to use it, and, unless you decide to change it, it stays the same for as long as the account is active. To understand why this is so important, you need to look at the alternative.
On a shared hosting account, you, along with multiple other users, all use the same physical server. Although a shared account can get a dedicated IP, by default, everyone on the server uses the same internet protocol address. By contrast, if you opt for a VPS solution you get an entire virtual server to yourself. This means you also have your own IP that only you will use.
Advantages of Using a Dedicated IP Address
If you share an IP with other people, your service is dependent to a certain extent on what other people are doing. For example, if another user on the same shared server starts sending spam, global filters might intercept it and blacklist the server’s IP. This means that your email communication will also be affected.
With a dedicated IP, you are solely responsible for your IP address’ reputation, so you can expect a much more reliable email deliverability.