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Whitepaper
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The Measure of a Brand: The Online Challenge
The dollar value behind the brand
The value of a brand is far more significant than most people realize today. Beyond the obvious goodwill and recognition factor, a brand is a highly valuable corporate asset. In some cases it can be worth tens of millions to billions of dollars, and represent more than 50% of a company’s net worth. Brand Finance, a global brand valuation consultancy, reports that Nike’s brand for example represents 84% of its total enterprise assets, making it the most valuable contributor to its parent company’s value.
According to the Brand Finance 250 January 2007 report on the world’s most valuable brands:
- The total value of the 250 most valuable global brands is $2,179 trillion.
- Coca-Cola is the world’s most valuable brand with an estimated value of $43,146 million.
- Google’s brand value is the highest of the Internet brands at $24,687 million.
- On average, brand values represent 18% of the total enterprise value of the businesses represented within the BF250.
- New financial reporting standards have led to a marked increase in disclosed intangible assets, including brands, amongst listed companies.
Intangible versus tangible assets:
Brand value is an integral component of a business’ intangible assets. Its percentage value can vary depending on a number of factors, including the type of industry, earning streams that can be attributed directly to brand and the cost to license the brand, among others.
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