Google has elbowed Apple from the number one spot to claim the title of the world’s most valuable brand, according to Millward Brown’s BrandZ™ Global Top 100 ranking for 2016.
The tech giant’s brand value soared by a whopping 32% from 2015 to reach $229 billion, just managing to leapfrog Apple, who experienced an 8% decline to $228 billion. But they weren’t the only company to see mammoth brand value growth. Both Amazon and Facebook saw over 40% growth, catapulting them both into the top 10 for the first time. This was to the detriment of Coca-Cola, whose value fell for the first time by 4%, perhaps reflecting the backlash against sugar-laden soft drinks from health officials, and ironically moving it unceremoniously to number 13 behind Marlboro at number 12!
The ranking is based on the views of 170,000 consumers globally, together with financial and business performance data from Bloomberg and Kantar Worldpanel to calculate a company’s brand value.
The total value of the world’s top 100 brands grew by a modest 3% to $3.4 trillion over the last year – an increase of 133% between 2006 and 2016, despite the global financial crisis.
The past year proved challenging for many brands, as the global economy slowed. But the top 10 brands still grew by 10% while brands ranked 51 to 60 fell 6%. Across the world, the picture varied: North America’s Top 10 brands increased by 10% to $1.26 trillion (about 37% of the total value of the BrandZ™ Global Top 100), Continental Europe by 5%, while Asia, accounting for 11% of total value, fell by 8%, as did the UK. Latin America has no brands in the Top 100.
Importantly, 54 of the brands in the inaugural 2006 Top 100 are still on the list a decade later, proving how a strong brand can maintain its value over time, but also demonstrating how new brands still have the potential to make their mark!
It was also challenging for most categories with six of the 14 categories measured declining in value. Only Apparel and Fast Food saw double digit growth.
Seven brands entered the ranking for the first time. Two were Chinese, a third’s success is due to China, and three were retailers.
To understand what drives brand value growth, Millward Brown analysed the impact of the four BrandZ™ metrics that work cumulatively to drive brand value: Potential, Innovation, Brand Experience and Love. Unsurprisingly, the brands with high scores on each of the four metrics had accelerated brand value growth.
“The brands that thrive, regardless of sector, are those that behave like challengers and adopt disrupter models and mind-sets,” says David Roth, CEO EMEA and Asia, The Store WPP. “They’re shaking up other categories with innovation that goes beyond new products or technologies — transforming the way a service is delivered, enhancing the consumer experience or changing a format. The power these brands already hold, combined with the strength of their platforms, is enabling them to quickly and successfully move across sectors.”
BrandZ™ cites three key learnings from the brands that performed particularly well in this year’s ranking:
- They disrupted before being disrupted.
- They excelled in digital and social media.
- They expressed a clear and consistent brand purpose.