Branding Keys to Successful Tourism
Determining the financial value of a brand is a difficult task. Determining it at lthe 100 most valuable brands in 2022 is even more complex.
Despite the intangibility of a brand, it’s hard to deny how effective a strong brand can be in driving a company’s bottom line; in all areas
Brand Finance, in its annual Global 500 report, shared the ranking of the world’s 100 most valuable brands.
This classification measures the value of brands, which can be considered as intangible assets that create a brand identity and reputation in the minds of consumers.
Apple retains the top ranking as the world’s most valuable brand. With an increase of 35% since the 2021 report.
Brand value is $355.1 billion.
This is the highest brand value ever recorded in the history of the Global 500 report, which has been published every year since 2007.
Let’s get this straight: the values shown are brand value calculations not market capitalization.
In 2011 I wrote a post about the value of brands, in it I shared this:To better understand Apple’s success, MB CEO Eileen Campbell said in her Report : “Every single Apple employee, from Steve Jobs and Tim Cook to interns, sees protecting and nurturing the brand as the most important priority“
Doesn’t it strike you that many of the world’s most valuable brands are worth more today than they were a year ago or two years ago or three years ago?
There was pandemic for all, inflation for all, global crisis for all. But some emerge stronger from crises, essentially because they have a robust brand to get through turbulent times better.
Brand strength is inversely proportional to risk
Those of you who already know me or have read this blog before, already know that a brand is not an expense but an investment. And that a well-managed brand can become the only asset of a company that appreciates in value over time. For example, Apple. And there are more.
For example Amazon, which ranks second, with a brand value of $350.3 billion. This is not surprising, considering that this giant has often found itself neck-and-neck with Apple in the rankings, and has even taken the top spot in previous editions of the report.
The podium is completed by Google, with a brand valued at US$263.4 billion.
And the 4th to 10th places are occupied by: Microsoft, Walmart, Samsung, Facebook, ICBC, Huawei and Verizon.
Where does this data come from? How is brand equity calculated? In simple terms, the methodology for calculating “brand equity” is a formula that is as follows:
Brand Strength (BSI) x Brand Royalty Rate x Brand Revenues = Brand Value
Brand Strength (BSI) x Brand Royalty Rate x Brand Revenue = Brand Value
Brand Strength Index (BSI) analyzes brand investment, brand equity and brand performance. The brand royalty rate is determined on an industry basis. Expected brand-specific revenues are determined based on the proportion of parent company revenues attributable to the brand in question. The value of the brand itself is discounted from the net present value.
There are different ways to determine the value of a brand in addition to this, and there are different rankings that calculate the financial value of brands such as Kantar Brandz, Interbrand, Credite Suisse Great Brands, among others.
Most valuable sectors
It is complicated to group by sector when many of these brands are transversal to different sectors, industries and categories. Trying to make a grouping, we more or less arrive at this:
More than a third of the brands on the list belong to the technology and services sector. Collectively, this category has a brand value of $2.0 billion
“Media” is the second most valuable sector: 19% of the top 100 brands belong to the media and telecommunications sector, including Google, Facebook and WeChat.
The acceleration of the value.
TikTok experienced a 215% increase in its brand value year over year, making it the fastest growing brand on the entire list.
Between 2019 and 2021, the platform’s user base skyrocketed from 291.4 million to 655.9 million in just two years. TikToktoday has more than one billion twenty-three million monthly activeusers (MAUs) worldwide according to data taken from ByteDance Ltd. reports.
The geography of valuable brands
Looking at where these brands are based, we see that the United Statesand China account for 73 of the top 100 brands in the ranking. Even more surprising: only six countries make up 94% of the list.
The growth of Chinese companies on the global stage is reflected in this visualization. As a point of comparison, a decade ago, only six Chinese companies were in Brand Finance’s Top 100 ranking, and none of them were in the top 30 by brand value.
Curiously,European countries only account for 14% of the list, which is a testament to how much Europe’s economic dominance has declined in recent decades.
In the 1960s, Europe accounted for almost a third of the world’s total GDP. But by 2017, it had shrunk to 16%. Will it grow again or continue to decline
Of course, if history has taught us anything, it’s that a lot can change over the course of a century. What a ranking like this will look like in the coming decades is an unknown.
Successful brands are valuable brands, and vice versa.
Identity experts agree on the relevance of the brand for any organization and that it is strategic to properly manage one of, if not the most important asset of the business.
Valuable brands are not there by chance, they are the result of a constant investment, a strategy that evolves, acourageous leadership, a differentiated value proposition, a talented and committed team, a values that connect with the value proposition.strong>team that is talented and committed, values that connect with the purpose, a way of thinking, saying and doing that is coherent and above all companies do not see them as an expense, but as an investment.
Those who continue to invest in their brand will be better positioned to grow their business when the economic situation improves than those who have cut their budgets, as has happened in previous crises.
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