Brands that allocate more of their marketing budgets to out-of-home advertising achieve 17% higher ROI, while brands that pair OOH and TV will see a 27% lift on their returns, according to new research released by Analytic Partners.

The fresh research, supported by oOh! media, is based on what the group claims is the largest market mix modelling data set in Australia, incorporating 20 years of data from over 500 econometric studies for hundreds of brands with a combined advertising spend of over $34 billion. The latest insights are designed to delve into the growing impact of OOH advertising in driving return on investment (ROI) when used consistently and at scale.

Analytics Partners found when used in conjunction with TV and digital, OOH drives the strongest returns, delivering a 27% higher ROI compared to TV alone for the same investment. The research also showed OOH alongside TV boosts ROI by 18% compared to using TV alone, while using multiple OOH formats generates a 30% increase in ROI. In addition, OOH campaigns extending beyond eight weeks drive nearly twice the ROI (+79%) of shorter two-week campaigns.

Australian OOH ROI performance is up to 2.5 times more effective than global OOH markets. During economic downturns, brands that boost their media and marketing spend experience a 17% increase in sales, with 60% achieving overall growth.

"Our data shows OOH is a strong foundation for driving media effectiveness, particularly in times when budgets and every dollar is heavily scrutinised. OOH is a cost-effective channel for building reach among mass audiences and provides a platform for performance media to drive synergy," said Paul Sinkinson, managing director ANZ, Analytic Partners.

Tara Coverdale, group director - data and insights at oOh!media, who supported the research, the research underscores the critical role OOH plays in today’s media mix.

"Brands that strategically invest in OOH are seeing remarkable returns, especially when it's integrated with other channels such as TV and digital. Out of Home advertising is more critical than ever for brands looking to maximise their media investments. It continues to demonstrate its growing effectiveness, providing brands with a robust and unmissable platform to reach and engage audiences at scale. By leveraging its unique strengths, advertisers can unlock new levels of growth and ROI," she said.

The combination of digital and OOH delivers a 39% stronger ROI for budgets under $1 million compared to television alone.