OOH delivers strongest ROI for luxury brands

New econometrics data from Independent Marketing Sciences indicates that out-of-home advertising generates the highest return on investment for luxury brands compared with other media channels.

The analysis, based on more than 270 campaigns across 24 channels over the past decade, shows that OOH delivers an average ROI of 12.8x for luxury advertisers, significantly above the category average of 4.7x across all channels.

OOH outperforms other media channels

The findings suggest that luxury brands see stronger financial returns from OOH than from most digital and traditional media formats. The data positions OOH ahead of channels such as consumer retargeting and performance-based search advertising.

According to the report, consumer retargeting delivers a 8.6x ROI, while Google Ads’ Performance Max achieves 8.2x. Lower-performing channels for luxury include content syndication, brochures and video on demand.

Alex Vass, Founder and CEO of Independent Marketing Sciences: "Luxury doesn't tend to follow the typical product playbook, and with luxury advertising, a lighter touch is often more. A heavily performance-driven, conversion-led approach risks brands undermining their own appeal. Out-of-home on the other hand can, through exclusive, high-impact environments, drive brand awareness, fame and an exceptional ROI - without the pressure of immediate conversion."

Luxury brands increase OOH investment

Industry data from Vivvix shows that luxury brand investment in OOH advertising nearly doubled between 2019 and 2023, reflecting growing confidence in the channel’s effectiveness.

Further research from JCDecaux indicates that 86 percent of audiences exposed to luxury apparel OOH campaigns engage with the brand, including visiting websites or social media platforms.

Tim Lumb, Director at Outsmart: "These results show that the creativity of Out of Home drives real-world emotional connection for luxury brands to the public."

Sector-specific performance highlights

The IMS analysis also shows strong OOH performance in other sectors, including utilities and infrastructure, which records a 9.1x ROI, and over-the-counter pharmaceuticals at 4.8x.

IMS uses econometric modelling to evaluate how factors such as seasonality, promotions and economic conditions influence marketing effectiveness across channels, providing comparative insights into return on investment.

The findings reinforce OOH’s position as a high-impact channel for brand-led industries seeking both visibility and measurable commercial outcomes.

www.im-sciences.com

Follow Marketing Report on LinkedIn