Traditional ads outperform digital in retail ROI

New econometrics data suggests that traditional advertising channels continue to generate the strongest return on investment for retail brands, outperforming several digital formats in effectiveness.

The findings come from Independent Marketing Sciences (IMS), which analysed more than 270 campaigns across 24 advertising channels over the past decade. The study highlights a widening gap between perceived and measured performance across media channels in retail marketing.

Offline channels lead ROI rankings

According to the analysis, offline and established media channels continue to deliver the strongest returns. Magazine and newspaper advertising recorded an ROI of 9.6x, followed closely by partnerships at 8.9x.

Other high-performing channels included events (6.1x), radio (6x), and television (5.9x), all ahead of several digital formats such as paid social (5.7x), shopping PPC (5.1x), and SEO (1.6x).

The top ten channels identified by ROI were magazine and newspaper advertising, partnerships, retargeting, events, radio, digital audio, TV, generic PPC, video on demand, and brand PPC.

Rising concerns over marketing inefficiency

The report also highlights inefficiencies in retail advertising spend. According to separate research cited by IMS, UK department stores wasted an average of £171,859 per month on ineffective marketing during the first quarter of 2026.

Alex Vass, founder and CEO of IMS: "Many retail brands – and, in particular, the venture capitalists and private equity funds that own these brands – instinctively flock to digital, and accept the ROI data that digital platforms promise as gospel. But very often, digital platforms overclaim their impact on sales and omit to mention the role of other marketing platforms in the driving conversions."

How the analysis was conducted

IMS applies econometric modelling to assess marketing performance by measuring how factors such as seasonality, promotions, and broader economic conditions influence sales outcomes. The approach is used to isolate the impact of individual channels and provide comparative ROI insights for brands.

www.im-sciences.com

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