Before addressing how damaging a shared IP address can be, you should be well aware of what a dedicated IP address is and if it influences the SEO of your website. A dedicated or static IP address is the utilize of the internet protocol that utilizes a 6- to 12-digit number to exclusively detect your website. This is how the server, routers, computers, and other electronic devices communicate with each other and know who is who. By having a dedicated server, your site is the only one with that IP address. At the moment, there is not benefit to having a dedicated IP address over a shared IP address as all the domain names will be different. While it is true each SEO web design will be unique to each website, the purpose of each one is the same, to be configured to reach the best page ranking.
To have valuable SEO, there must not be any detractors associated with your website. With a static IP address on a server, the search engine spiders can easily crawl over your website and determine its address effectively. With shared IP address, it could take longer to affect how your page is ranked, but not always.
Knowing who is in your neighborhood in the real world and on the internet are related. For those of you that live in nice well-kept neighborhoods that are relatively safe, it is because you and your neighbors think alike when it comes to safety. Most are in the same income brackets and are a part of the legal society. Now take a home owner that is a drug dealer and he moves into your neighborhood. Crime increases along with a crackdown by the police. No matter what your SEO web design does or how effective it is, you are connected with those other websites that are on your shared server. Just like the neighbors of a drug dealer will be watched over by the police, the search engines will suspect your site of engaging in blackhat tactics if there is one on your server. If a site is targeted for banning by the search engine, and you share the same IP address, then you may get banned just as well. You will be guilty by association. This connection is just a fact of life. If one of the sites on your shared server is of an adult theme or involved with spam, placing a request to have your site placed on a different server would be advisable.
Keep with reasonable SEO practices that stay in the whitehat techniques for the best results. Be in a neighborhood that follows your same logic when it comes to setting up and running your SEO profile.
The cost of a dedicated or static IP address is much greater than one that can be purchased on a shared IP address. It is a rare situation where a site that is not guilty of blackhat tactics get banned, but it does occur. Take the proper precautions in your SEO web design from the opening and know your neighborhood. Taking an active approach to this is the best way to avoid any problems.