For the beginners first let me explain the concept of shared hosting. It is a server that consists of a number of sites starting from 10 to up to 300, which are hosted on the same server, and hence they share the same IP address. So that means you are sharing your IP address with many other sites and that may even affect your search engine ranking. Now suppose you are sharing IP with any unwanted site that may be harmful for your image, your site will be associated with that and hence would definitely affect your search engine ranking. So as such shared web hosting is good but you need a dedicated IP address.
Dedicated IP Address and Shared hosting
If we look from the point of view of the search engine then we must choose the shared hosting with a dedicated IP. So the next question arise that what is this dedicated IP? Actually When you pay for an IP address on shared hosting It is called dedicated IP and now you have an IP of your own. Your IP address would not be shared by any other site and hence improve your ranking. The charges for a dedicated IP are as low as $2 per month. So if you are running a professional and business site, you can easily afford it and improve your ranking.
Shared hosting and loading speed
Recently Google has started giving priority to the loading speed of the web site. Faster the loading speed, better is the search engine ranking as these web sites provide valuable information to the people in a short interval of time. If you use the shared hosting, it is more economical but would render your site slower than others as a single IP is being shared by many other sites and hence the ranking would be affected. While if you choose to have a dedicated IP, you will get a better speed. So the search engine ranking not only depend on the shared hosting but also the type of web sites that are sharing the IP address with you.
Quality of the shared server
It is well said that “the company matter”. Same is the case of the hosting criteria. Your search engine ranking depends upon the websites on your network. If your website is on a suspicious or malfunctioning network then it can cause alarm to Search Engines, rendering your website less prior. So the webhosts ensure that the network provider is reliable and trust worthy so that it do not lead to any relation with the spam or malicious websites. It leads to a great affect on your search engine ranking and it is ensured that the client is not labeled in the same category as discussed above. If you want to Find the best hosting, you need to check with all features of hosting company.
Virtually there is no effect of shared hosting on the search engine ranking. In rare cases where the sharing of IP address is with the spam sites or any far faster sites, your ranking would be affected. Dedicated IP addresses would help loading your site more quickly and would distinguish your site from the potentially spam sites and hence improve your ranking.