While the cumulative value of the world’s most valuable brands has increased significantly since 2000, this growth could have been even more substantial.
Interbrand’s latest report highlights that a focus on short-term marketing tactics has hindered the long-term value creation potential of these brands. Global brand consultancy Interbrand has unveiled its annual Best Global Brands ranking, commemorating 25 years of brand valuation analysis. Since 2000, Interbrand has tracked the value of the world’s biggest brands, revealing a striking trend: while performance marketing tactics have spurred short-term financial gains, a lack of investment in long-term brand strategy has resulted in $3.5 trillion of unrealized value among the Best Global Brands. In the last year alone, this amounts to a staggering $200 billion in lost revenue.
The cumulative value of the world’s most valuable brands has surged 3.4 times since the inception of the ranking, climbing from $988 billion to $3.4 trillion. Interbrand’s Global CEO, Gonzalo Brujó, commented, “If these brands had been treated and managed as strategic growth assets, this table could be worth as much as $6.9 trillion. The growth we see hides a staggering missed opportunity.”
Nathan Birch, CEO of Interbrand Australia, noted a historic moment for Australian branding, as Who Gives a Crapbecomes the first Australian brand to be mentioned in the report. Birch highlighted a concerning trend: an over-reliance on short-term performance tactics has cost global brands $3.5 trillion in cumulative brand value. “This ‘efficiency tax’ serves as a wake-up call for Australian businesses. While operational efficiency is essential, it shouldn’t come at the expense of building strong, desire-driven brands that can drive exponential growth.”
Birch emphasized the shift in brand strategy, stating, “Brands are moving from ‘finding customers for your competencies’ to ‘building competencies around your customers,’ allowing them to expand beyond traditional boundaries and tap into new opportunities.” He further added, “For every point increase in the combined Role of Brand and Brand Strength, businesses can expect a 2.3x return on their stock price, underscoring the critical importance of brand as a competitive moat and long-term growth driver.”
Apple retains top spot despite decline
Apple remains the most valuable brand, although its value has dropped for the first time in over two decades, down 3%. Greg Silverman, Global Director of Brand Economics at Interbrand, remarked, “While others rushed into AI, Apple took a more deliberate approach, prioritizing long-term trust over short-term revenue gains. Following these brand moves, Apple’s stock has increased 20% year-to-date, and we anticipate its value will rebound in the 2025 rankings.”
Automotive brands lead the 2024 rankings
The automotive sector dominates the 2024 rankings, with 14 of the top 100 brands from this category, including Toyota(#6), Mercedes-Benz (#8), and BMW (#10) in the top 10. However, not all automotive brands have fared well; Tesla(#12) has experienced one of the largest declines in brand value, down 9%. In contrast, Kia (#86), Hyundai (#30), and Toyota (#6) achieved double-digit growth.
Luxury brands show resilience
Luxury brands have continued to thrive, with an overall brand value increase of 7%. Ferrari (#62) emerged as the top-rising brand this year, boasting 21% growth, while Louis Vuitton climbed three places to #11, and both Hermès (#22) and Prada (#83) saw significant brand value increases of 15% and 14%, respectively. This year’s newcomers include Nvidia (#36), Pandora (#91), Range Rover (#96), and Jordan (#99), with Jordan being the first personality brand to enter the ranking. Uber (#78) and LG (#97) also re-enter the list.
Shifts in marketing strategies
Over the past 25 years, Interbrand has noted a shift in how company executives approach growth, with a focus on lower total investments and immediate returns. Strategies integrating long-term brand equity with short-term revenue gains are becoming increasingly crucial, yet remain rare.
Brujó stated, “Performance tools and systems have evolved significantly over the past quarter-century. As these tools shift, so do the pressures on brand and marketing leaders, who are now expected to deliver greater revenue returns within shorter timeframes for lower investments.”
He concluded, “Many of the world’s most valuable brands are missing out on substantial earning potential by prioritizing short-term gains. Our analysis indicates that such tactics can undermine a company’s mid- to long-term revenue potential.”
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A new study by Interbrand suggests that the world’s top brands have forfeited billions due to a lack of long-term brand strategy. News, Brands Dynamic Business
