What we see.
Today, two-thirds of the world’s GDP is intangible. Over the past three decades assets like patents, trademarks, human capital, brands and customer goodwill have become the largest component of a firm’s overall market value. And brands are the largest and fastest growing component of intangible value. Today, brands represent nearly one third of the $12 trillion in market capitalization of the S&P 500. Since 1983, brand value has grown by nearly eighty percent.
But if brands are worth that much to companies and their shareholders, why isn’t the c-suite spending more of their time understanding, protecting and nurturing their brands? In other worlds, why are most brands managed like a marketing function rather than a financial asset?
The questions answer themselves. It’s because brands are not measured or managed with the rigor of other financial assets, and neither are the full range of factors and touchpoints that create brand value, like marketing, communications, social media, brand partnerships and sponsorships, product portfolio and customer experience.
What we do.
Our goal is to change the way the world thinks about brands.
By marrying the discipline of financial management with the art of brand management, we help businesses understand and mine their most important asset: the relationship between their customers and their brands.
We do that by providing our clients with the tools to measure the value of their brands, identify what aspects of brand and customer interactions are creating that value, and specify how to manage the brand and its touchpoints to increase brand value. We enable companies to approach and manage their brands as value creators, rather than as cost centers.
Why it works.
We are able to do this because of the two core assets that underlie all our work.
The first is the BrandAsset® Valuator model itself. BAV was originally created twenty years ago by top academics and practitioners, and in the years since, has been vetted, peer-reviewed, and published in leading academic journals, featured in academic and industry conferences, and written about in the leading business and thought-leadership media around the world. No other model of brand development and valuation has BAV's ability to show direct and indirect impacts of brands on business metrics like pricing, loyalty and P/E ratios. BAV directly measures brand contribution to firm price and financial return.
The second asset is the BAV database. In the two decades since BAV was founded, we have invested around $150 million dollars collecting seventy-eight metrics on 50,000 brands in fifty-one countries. Annual studies are conducted in seventeen countries comprising 78% of global GDP. In the U.S. alone, we talk to 17,000 people each quarter, to collect data on more than 3,500 brands. This database allows us to continually reconfirm and evolve the model itself, as well as provide deep insights to brands around the world – where they currently stand, how they perform compared to competitors, and the ways they can follow other icon brands to positions of greater value.