How Technology is Eating the Brand World
Building a brand with an imperishable competitive edge can be difficult.
Technology companies however, are redefining what that edge means. By hastily responding to emerging consumer needs and leveraging the power of brand, these companies can continuously create meaningful solutions for real problems with scale.
Today’s animated chart highlights the most valuable brands in 2019 versus 2001, according to the annual “Best Global Brands” ranking by Interbrand. It illustrates the degree to which technology companies have been able to scale into massive brands over a short time frame, supplanting some of the best known companies in the world.
What is Brand Value, and How is it Measured?
Interbrand has created and consistently used a robust formula to measure brand value. Brand value is the Net Present Value (NPV) or the present value of the earnings that a brand is forecasted to generate in the future.
The formula evaluates brands based on their financial forecast, brand role, and brand strength. The full methodology can be found here.
Tech Reigns Supreme
In 2001, the cumulative brand value was $988 billion. Today, that value stands at $2.1 trillion and represents an average CAGR of 4.4%. Over the years, global tech giants have swiftly climbed the ranks, and now represent a significant amount of the total brand value.
In fact, with a combined brand value of almost $700 billion, tech companies account for half of the top 10 most valuable brands in the world. Perhaps unsurprisingly, Apple holds the title for the world’s most valuable brand in 2019—for the seventh year running.
Only 31 brands from the 2001 ranking remain on the Best Global Brands list today, including Disney, Nike, and Gucci. Coca-Cola and Microsoft are the few who have remained in the top 10.
Below is the full list of the world’s most valuable brands:
|Rank||Brand||Brand Value ($B)||1-Yr Value Change||Industry|
|#71||Hewlett Packard Enterprise||$8B||-3%||Technology|
|#86||Johnson & Johnson||$6B||-8%||Retail|
|#94||Tiffany & Co||$5B||-5%||Fashion|
Since 2001—the first year the report featured 100 brands—several tech companies have joined and climbed their way to the top of the list, while 137 notable brands dropped off entirely, including Nokia and MTV.
In an interesting turn of events, Facebook dropped out of the top 10, and into 14th place after a volatile year. The move however, is not surprising. The tech giant has been mired in controversies, ranging from data privacy issues to prioritizing political influence.
Which Brands Are Growing the Fastest?
2019’s fastest growing brands also signals tech domination, with Mastercard, Salesforce and Amazon leading the charge.
The companies in this ranking experienced a significant increase in their brand value year-over-year (YoY).
|Rank||Brand||Brand Value ($B)||YoY Growth|
According to Interbrand, the success of these brands may be attributed to their ability to anticipate rapidly changing customer expectations.
While the relationship between business performance and brand equity has been a widely debated topic for decades, it is clear that customer satisfaction bolsters brand equity, and encourages impressive financial results.
Disrupt, or Be Disrupted
Beyond anticipating changing needs, some of the most successful brands also cater to a younger customer base. This is the most evident in luxury and retail—the two fastest growing sectors for the second consecutive year.
This audience is tech-first in their buying habits and increasingly demand more elevated and shareable experiences. As a result, traditional brands across all sectors are innovating to keep up with this audience, and some are essentially becoming tech companies in the process.
For example, Gucci attributes their success to finding the perfect blend between creativity and technology. The company that once relied on its heritage, now focuses heavily on ecommerce and social media to engage with their Gen Z customers.
Similarly, Walmart recently announced that they are employing virtual reality headsets and machine-learning-powered robots in an attempt to compete with Amazon.
Will traditional companies ultimately become tech companies, or simply get eaten alive?
How COVID-19 Has Impacted Media Consumption, by Generation
This visualization explores how each generation’s media consumption is changing amid the frenzy of pandemic-induced quarantines.
Media Consumption in the Age of COVID-19
As the coronavirus outbreak continues to wreak havoc across the globe, people’s time that would have otherwise been spent perusing malls or going to live events, is now being spent on the sofa.
During this period of pandemic-induced social isolation, it’s no surprise that people are consuming vast amounts of media. Today’s graphics use data from a Global Web Index report to explore how people have increased their media consumption as a result of the outbreak, and how it differs across each generation.
More Time to Kill
Global Web Index found that over 80% of consumers in the U.S. and UK say they consume more content since the outbreak, with broadcast TV and online videos (YouTube, TikTok) being the primary mediums across all generations and genders.
Unsurprisingly, 68% of consumers are seeking out pandemic updates online over any other activity. Gen Zers however, have other plans, as they are the only generation more likely to be listening to music than searching for news.
Overall, younger generations are more likely to entertain themselves by playing games on their mobile or computer. Millennials also stand out as the foodie generation, as they are the most likely to be searching for cooking recipes or reading up on healthy eating.
Leaning on a Pillar of Trust
Across the board, consumers view the World Health Organization (WHO) as the most trusted source of information for any COVID-19 related updates.
This isn’t true everywhere on a regional basis, however. For example, while U.S. consumers trust WHO the most, UK consumers view their government as their most trusted news source overall.
Trust in information shared on social media is higher than word of mouth from friends and family, and even foreign government websites. That said, it is lower than information shared on the radio or news websites.
The Need for Pandemic Positivity
While staying abreast of pandemic updates is important, ultimately, a positive mindset and the ability to switch off will help people cope better day-to-day.
Therefore, it seems reasonable that people are more inclined to invest in new subscription services since they have been in isolation, with almost one-third of Gen Zers considering purchasing Netflix, followed by Disney+.
Understandably, people are becoming increasingly worried about how much time they are dedicating to their screens. However, research suggests that screen time itself is no cause for concern. Rather, it’s the content we choose to consume that could have a significant impact our psychological well-being.
Perhaps most intriguingly, the TV shows and movies that are increasing in popularity on Netflix are about pandemics—which could signify the need for people to fictionalize the chaos we find ourselves in.
Regardless of what type of content we are consuming, the fact is that every generation is relying on their devices during this pandemic to inform and distract more than ever before, creating a huge opportunity for media companies to engage a captive audience.
The Most Loved Brands, by Generation
Can a brand transcend time and be all things to all people? This graphic seeks to find out by visualizing the most loved brands by generation.
The Most Beloved Brands, by Generation
When it comes to buying into brands, consumers are spoiled for choice.
The vast amount of options available makes it increasingly difficult for brands to build meaningful emotional connections with them—but for the brands that do, the payoff can be huge.
Today’s graphic pulls data from MBLM’s 2020 Brand Intimacy Report and visualizes the top 10 brands that different generations connect with the most.
Can Emotion Be Measured?
Brands that tap into consumers’ emotions can establish higher levels of trust. This in turn creates a culture of loyalty that could ensure a unique standing in the market and long-term growth.
In fact, intimate brands that have a strong emotional bond with their consumers tend to outperform top companies listed on the S&P 500 and Fortune 500 in both revenue and profit. To measure how brands emotionally connect with consumers, MBLM looked at four key factors:
- Users: The existing relationship between a brand and a consumer
- Emotional Connection: The degree of positive feelings the user has for a brand, and the extent to which their personal values align with the brand’s values
- Archetype: The six markers that are present among intimate brands, which include fulfillment, identity, enhancement, ritual, nostalgia, and indulgence
- Stage: The degree of intensity in the relationship across three phases: sharing, bonding, and fusing
- Intimacy Score: Based on these four components, a score is assigned, ranging from 0-100
The total score also reveals which brands rank the highest across different age groups. While there are some commonalities across each generation, can brands be all things to all people?
The Chosen One
There are very few brands that have the luxury of retaining loyal customers from different age brackets. Amazon, however, manages to transcend age. The retail giant appears in the top five for Millennials, Gen X, and Baby Boomers—with the latter awarding the brand their #1 spot.
Every generation named “enhancement” as Amazon’s defining trait, meaning their lives have improved as a result of the relationship. The “ritual” trait also scored high, with users claiming the brand has become ingrained into their daily behavior.
Ranked: Top Brands by Generation
Gen Z and Millennials (18-34)
Sony-owned PlayStation holds the title for the most intimate brand among Millennials, climbing up from the 8th spot in 2019. Impressively, more than 50% of Millennials have an emotional connection to the brand, with men having a particularly strong affinity for it.
Having recently celebrated its 25th anniversary, the gaming brand’s success has been fueled by the increasing popularity of multiplayer and professional gaming, as well as new product innovation—with five of the ten best selling consoles owned by PlayStation.
|#1||PlayStation||78.3||Media and Entertainment|
|#4||Disney||67.8||Media and Entertainment|
|#8||YouTube||63.0||Media and Entertainment|
|#9||Xbox||59.8||Media and Entertainment|
|#10||Nintendo||56.8||Media and Entertainment|
Interestingly, when Gen Z (18-24) are singled out, Microsoft-owned Xbox ranks as #1, increasing its score to 73.5 in 2020 from 49.7 in 2018.
Gen X (35-54)
As the generational middle child, Gen X did not grow up with the same access to technology. However, their tech adoption is almost on par with Millennials, with similar adoption rates across tablet and smartphone ownership.
It is no surprise therefore, that Apple has captured the hearts of this generation, sitting proudly in first place. When the iPhone launched in 2007, this group was between 22-41 years old, so they have likely been loyal followers of the tech brand since its earlier days.
|#3||Netlix||66.1||Media and Entertainment|
|#5||Disney||65.0||Media and Entertainment|
|#8||Xbox||57.0||Media and Entertainment|
While this generation has no qualms about shopping online, 72% of them shop in brick and mortar stores and are satisfied with doing so—which may be part of the reason why retail giant Walmart joins Amazon in the top 10.
Baby Boomers (55-64)
Controlling almost 70% of disposable income in the U.S., Baby Boomers are arguably the most influential of all consumer groups.
While they feel the most emotionally connected to Amazon, it’s also true that Apple was another tech brand to win the affection of this age group.
|#6||Hershey’s||54.8||Consumer Packaged Goods|
|#8||Pillsbury||51.8||Consumer Packaged Goods|
|#9||Kellogg’s||50.0||Consumer Packaged Goods|
|#10||Pepsi||50.0||Consumer Packaged Goods|
This generation dominates almost 50% of consumer packaged goods (CPG) sales in the U.S.—which likely explains why the rest of their top brands are more traditional household names, such as Macy’s, Hershey’s, and Kellogg’s.
It is also clear from the ranking that this group values brands with nostalgic qualities, as well as the ability to provide them with moments of indulgence.
The Changing Brand Landscape
The brand and consumer relationship has shifted with the ages, but each generation’s unique value system has remained the most important piece of the puzzle.
It is worth noting that none of the Baby Boomer’s favorite brands appear in the ranking for those aged 18-24 (Gen Z). Are the preferences of younger generations signalling a cultural shift, in which we place more value on distraction rather than satisfaction?
Note: The 2020 Brand Intimacy Report covers an age range of 18-64. The way that the ranking is structured makes it difficult to reflect conventional demographic groups (e.g. Gen Z, the Silent Generation etc.)
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