Google unveiled a new logo on September 1. (Gareth van Zyl)
Cape Town – Tech companies have tightened their grip on the world’s most valuable brands, an international survey showed.
The Brandz list compiled by Millward Brown found that Google led the top 100 list with a brand value of $229.198bn. Apple ($228.460bn), Microsoft ($121.824bn), AT&T ($107.387bn) and Facebook ($102.551bn) rounded out the top five brands.
READ: Toyota tops the list as world's most valuable car brand
Over the last 11 years, brand value has increased by 133% despite the global financial crisis, said Millward Brown.
“Brands do not need a higher purpose, but they do need to be seen as doing more than just making money; they need to be seen as improving the life of the consumer in some way," said David Roth chief executive of The Store WPP.
“This is especially relevant when appealing to millennials and when competing in fast-growing markets where consumers expect brands to act as partners in their quest to achieve the good life,” Roth added.
Tough economic times
READ: Tech firms global brand rankings
The rise of China as a global power is demonstrated by the fact that two of the newcomers to the top 100 are Chinese brands and one is accelerating its business in China.
Chinese electronics giant Huawei is already established on the list at 50 with a brand value of $18.652bn on the list, behind South Korea’s Samsung at 48 ($19.49bn).
The survey warned that tough economic times have negatively impacted on company profits.
“For example, retail and technology rose 8% and 6%, respectively, this year after having each increased 24% in the 2015 ranking. Telecom providers rose 9% this year after a 17% rise a year ago. Insurance and soft drinks continued to increase in value, but more moderately. Personal care was flat,” said the Brandz survey.
One of the challenges for brand value growth is the failure of advertising to convince consumers to buy products and services.
“Advertising as we know it has come to an end. That wonderful world of smiling families and golden ballrooms of perfection, settings of inspirational waltzes, with a beautiful and emotional speeches being given in the background, has ended. It has ended for many reasons, but it has ended mainly because people no longer believe it,” said Renato Duo, planning manager for J Walter Thompson in Sao Paolo.
Companies which wish to remain relevant should focus on being nimble and responsive to changing environments.
“For a global brand to remain strong in the face of rapid evolution, technological disruptions, and social change in the form of shifting values (the new normal), it must make sure its vision for the future is clear and understood by all who may work to deliver against it,” said Emilie Hamer senior vice president of Global GTB.
Here are the top 10 brands and their values:
1. Google - $229.198bn
2. Apple - $228.460bn
3. Microsoft - $121.824bn
4. AT&T - $107.387bn
5. Facebook - $102.551bn
6. Visa - $100.8bn
7. Amazon.com - $98.988bn
8. Verizon - $93.22bn
9. McDonald’s - $88.654bn
10. IBM - $86.206bn
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