Posts Tagged ‘Interbrands’

So, what’s a brand worth?

May 23, 2012

Millward Brown — a brands’ consultancy — has just released its Brand Z 2012 brand rankings and valuations (see chart below and click through for the complete list).

Apple tops their list … followed by IBM, Google, McDonald’s, Microsoft and Coke.

Sounds reasonable … but, according to Ad Age — the list re-opens a can of worms re: brand valuations.

Ad Age cites IBM as a case in point:

According to Brand Z, IBM continues its rise up the brand-valuation hierarchy, leapfrogging Google and rising to No. 2 behind Apple, its value up 15% to nearly $116 billion last year.

Omnicom’s Interbrand also had IBM No. 2 in its brand-valuation ranking released last October, up 8%, but valued Big Blue at just under $70 billion, only about 60 cents on Brand Z’s dollar.

But, the CoreBrand Brand Power ranking released about three weeks earlier, said  the value of IBM’s brand plummeted last year as it fell 18 places to No. 66 on that firm’s list.

Hmmm.

Ad Age says it’s illustrative of a bigger problem:

The IBM case is but an extreme among many disparities the Marketing Accountability Standards Board has found in publicly available valuations of brands.

The MASB  has been trying to develop a common way of measuring what brands are worth and how those values change.

“Many of the valuators treat them as black boxes, so you don’t even know what’s in it.”

So, how much is a brand worth?

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