Saturday, January 26, 2019

Brand Finance Global 500 Shows Dominance of Internet Ecosystem Firms

The latest Brand Finance Global 500 study might be an illustration of the power and influence of the broad internet ecosystem. You might note that firms with device, commerce, application or networking roles occupy the top nine of ten spots at the top of the listings.

Also, the growing role of commerce, advertising and other platforms is clear. “Change at the top is reflective of a wider global trend as the technology sector accounts for more than twice as much brand value as telecoms,” the latest study notes.

The other obvious trend is growing share of Chinese firms. “The growth of Chinese brands extends beyond the technology sector as the country continues to narrow the value gap with the United States at an impressive rate,” the report says. Since 2008, China’s share of global brand value has increased from three percent to 15 percent.

Among telecom firms, Telstra “continues to perform exceptionally well across a number of brand attributes, with a resulting 14 percent increase in brand value to US$12.4 billion,” the report states.

Still, the study notes that brand strength and market value are not synonymous. “The strength of the brand is in contrast to the overall decline in Telstra’s market value of 21 percent,” the study says.

So brand value does not always translate into equity value.

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