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Color in Branding: What Does it Say About Your Industry?

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Color in Branding: What Does it Say About Your Industry?

Color in Branding: What Does it Say About Your Industry?

The use of color can be a powerful way to guide the associations consumers have about a brand, but how and why certain colors are used can often be perplexing.

The color red is the perfect example. When it is used as a primary color for McDonald’s, red is meant to energize and attract the attention of potential customers. Red is also thought by some psychologists as a hunger stimulant, which might help them sell more Big Macs and McNuggets at the end of the day.

However, in the case of a company such as British Airways, red is supposed to represent none of those things. For an airline brand, red should be about warmth and a sense of caring, and it ostensibly helps to make customers feel more comfortable flying. For the famous shoe brand Vans, the color red is supposed to evoke feelings of desire and passion, with a hope that customers will link these concepts intrinsically to their brand.

How can red mean so many different things at the same time? The answer is context, much of which is provided by consumers choosing between brands within a particular industry.

Color and Context

When consumers plan to make a purchase decision, they are typically deciding between an evoked set of companies that they’re familiar with for a specific industry or sector. In buying an automobile, for example, a consumer may only to be willing to only consider buying a Toyota, Ford, or Honda.

Since these brands are competing against one another for a “spot” in the mind of consumers, their brands are positioned based on consumer needs and desires in order to win certain associations. Color is an important part of this – but the need is only to differentiate from competitors within an industry, since non-auto brands like McDonald’s or Calvin Klein are not a part of the evoked set of brand choices in this situation.

Therefore, industry context is an essential factor that determines the color choices made by companies for their branding.

Examples: Color in Branding

Today’s infographic from Towergate Insurance breaks down 26 industries by the colors used in top brands, providing an additional focus on industries such as autos, pharmaceutical, and apparel to identify the reasons why particular colors are used.

Here are some examples worth thinking about:

Autos
Based on the breakdown of the top 20 brands in the auto industry, it is interesting to see that silver is used with more prominence than in other sectors. Silver provides a sense of luxury and high-quality workmanship. Red and blue are also popular colors for brands in the auto sector. Red can symbol masculinity, while blue is supposed to represent reliability for brands like Volkswagen or Ford.

Pharma
Within the context of pharmaceutical branding, the concepts of health, vitality, and optimism are important. Blue, which is used as a color in branding for companies such as Pfizer, is meant to represent well-being. Meanwhile, GlaxoSmithKline’s orange is meant to be optimistic and energetic. Vitality or health can also be represented with green, which has a strong association with nature and healing.

Apparel
Fashion is dominated by companies that use black as a part of their branding. Of the top 20 apparel and accessory brands, 12 of them use black in their logos to evoke senses of sophistication, formality, style, or luxury.

These include companies such as Chanel, Zara, Adidas, Nike, Oakley, Burberry, Cartier, and many others.

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How the eSports Industry Fares Against Traditional Sports

eSports has evolved into a billion dollar industry in just a decade, but how does it fare against traditional sports when it comes to monetization?

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How the eSports Industry Fares Against Traditional Sports

In just a decade, electronic sports (eSports) has evolved from an underground culture into a mainstream industry worth billions of dollars today.

The industry is growing at an explosive rate, and with major tech giants like Amazon and Google vying for a piece of the pie, the future of this industry is an exciting one.

It’s no surprise that eSports is often compared to its predecessor, traditional sports. However, eSports certainly has none of the typical confines of a traditional sport—so how does it compare in terms of audience size, market potential, and revenue?

An Equal Playing Field?

eSports is an umbrella term for competitions played on electronic systems, typically by professional video gamers—with the first competition dating back to 1972.

The 16 to 24-year-old audience has increased by 60% since 2017, fueling the rapid growth of this emerging industry. The global audience is expected to grow to 276 million by 2022, with League of Legends tournaments often boasting a higher viewership than some of the biggest U.S. leagues:

Cumulative Viewership (2017 finals)

  • NFL Super Bowl: 124 million viewers
  • League of Legends: 58 million viewers
  • MLB World Series: 38 million viewers
  • NBA Finals: 32 million viewers
  • NHL Stanley Cup Finals: 11 million viewers

While viewership can surpass that of well-known professional leagues, it doesn’t yet stack up in terms of monetization. That said, this aspect is now increasing enough to be seen as a threat to more traditional leagues.

How Much is eSports Worth?

According to Goldman Sachs, eSports will exceed $1 billion in revenue in 2019, and reach $3 billion by 2022. eSports creates the foundation for an entire ecosystem of opportunities, which include live-streaming, game development, player fanbases, and brand investments for sponsorship and advertising—where 82% of revenue currently comes from.

Although eSports under-indexes on monetization relative to the size of its audience, there is a huge opportunity for it to close the gap, given the predicted 35% compound annual growth rate (CAGR) for total eSports revenue between 2017 and 2022.

Getting Attention from the World’s Biggest Players

The success of eSports tournaments is attributed to live-streaming platforms. Amazon’s purchase of leading video-streaming site, Twitch, allowed Amazon to tap into the rapidly growing eSports audience, along with other live-streaming opportunities. Since the acquisition in 2014, the number of average viewers has doubled to 15 million, half of YouTube’s daily viewership.

Google, which lost the bidding war for Twitch, has recently made its own big move into gaming with cloud gaming service Google Stadia. Ultimately, the company hopes it will help keep live-streamers on YouTube instead of competing platforms.

The Future of eSports

Over time, eSports will tap into bigger advertising budgets, and reach national, regional, and global levels, as traditional sports are able to. eSports will also be a medal event in the 2022 Asian Games, which could pave the way for full Olympic status.

As a whole, eSports is starting to seriously compete with the big leagues. With a massive worldwide appeal, passionate fans, and billion-dollar revenues, the industry is only beginning to take flight.

The debate however, is not around the battle between eSports and traditional sports. It is around the shift to celebrating a culture that is completely virtual, over one that is physical—which has much bigger implications.

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Ranked: The 10 Organizations With the Best (and Worst) Reputations

According to a representational poll of 18,228 Americans, these are the organizations considered to have the best and worst reputations.

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There is no shortcut to gaining a bulletproof reputation.

To get there, businesses not only need to think long term, but they also need to do what is considered “right” in every possible situation.

Aspiring companies must be truly customer-centric, going above and beyond in how they treat their customers. They also require a cohesive vision that helps create a loyal and fervent fanbase that will go to bat for them anytime it’s needed.

The Best and Worst Reputations in America

Today’s infographic from TitleMax highlights the 10 organizations that have the best reputations in the country, followed by 10 that fall on the exact opposite end of the spectrum.

In total, the visualization shows five years of data, so you can see how the rankings have changed over this stretch of time.

Ranked: The 10 Organizations With the Best (and Worst) Reputations

As you can see, the reputations of organizations are very much in flux.

In fact, you can even see the impact of recent news cycles on the rankings for 2019.

For example, Patagonia shot up the rankings to become the #3 most respected company after donating its entire $10 million tax cut to environmental groups, while the U.S. government and Facebook both make an appearance on the worst list, thanks to recent negative media coverage.

The Best Reputations Over Five Years

If you haven’t heard of Wegmans Food Market, you might want to stop by a location the next time you’re in the Northeast.

With 99 stores and about $9 billion in revenue per year, this family-run supermarket chain believes that in order to be a great place to shop, it must also be a great place to work. This mantra must be effective, since Wegmans consistently ranks as having one of the best reputations in the entire country.

Also ranking high on the list is Amazon, which was founded as an “obsessively” customer-oriented company. The online retailer has taken the #1 spot in the rankings in three of the last five years, despite a generally negative sentiment hanging over tech giants in recent months.

“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.”

— Jeff Bezos, founder of Amazon.com

The Worst Reputations Over Five Years

As Warren Buffett quipped, a reputation can be built over decades, but it can also be lost in just five minutes.

Various companies that have experienced recent scandals make the list here (i.e., Facebook, Volkswagen, Equifax). It’s also interesting to see that years after each scandal, rankings seem to normalize as the media and public get preoccupied with newer events.

Ranking Methodology

The ranking is based on a survey by Harris Poll, in which the 100 Most Visible Companies in the country are scored and ranked using a proprietary “Reputation Quotient”. For the 2019 edition, the poll had 18,228 respondents from a nationally representative sample.

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