Out-of-home (OOH) advertising is delivering significantly higher returns for luxury brands than any other channel, new econometric analysis from Independent Marketing Sciences (IMS) shows.
IMS analysed more than 270 campaigns across 24 channels over the past decade and found OOH produced an average return on investment of 12.8x for luxury brands — meaning each £1 spent generated £12.80 in revenue. By comparison, the average ROI across all channels for luxury was 4.7x.
“Luxury doesn’t tend to follow the typical product playbook,” said Alex Vass, IMS founder and CEO. “A heavily performance-driven, conversion-led approach risks brands undermining their own appeal. Out-of-home, through exclusive high-impact environments, can drive awareness, fame and exceptional ROI without the pressure of immediate conversion.”
Ad-spend analysis by Vivvix found luxury investment in OOH nearly doubled between 2019 and 2023. JCDecaux data cited in the report showed 86% of audiences who saw luxury apparel OOH engaged with the brand afterwards, including visiting its website or social channels.
Other channels delivering strong ROI for luxury included consumer retargeting (8.6x) and Google Ads Performance Max (8.2x). Lowest-performing channels for luxury were content syndication (0.7x), brochures (1.2x) and video on demand (1.5x). IMS also reported strong OOH ROI in utilities and infrastructure (9.1x) and over-the-counter pharmaceuticals (4.8x).
IMS said its econometric modelling isolates channel effectiveness by accounting for seasonality, promotions and broader economic trends.
