For a long time, many working in Marketing & Advertising have referred to brands as an intangible asset whose benefits are near impossible to measure. So for businesses to allocate budget to invest in brand maintenance/development seems a tough ask. 

Aren't brands just emotional, metaphoric and ornamental; an expensive luxury within the marketing arsenal? No.

Research shows that a company's brand is its most powerful and versatile business tool, its most valuable commercial asset. It increases the chances of customers choosing your product or service over your competitor’s, attracting more customers, at a lower cost per sale, who are happy to pay a little more, and will buy it a little more often. A strong brand will deliver more revenue, profit and growth, more efficiently, year after year, and so generate more shareholder value. It can help attract, motivate and retain your second most important asset: your people. And can work as a barrier to entry for future competitors, creating a legal ‘monopoly’.

The obvious financial and commercial benefits of a brand to a business is clear. So; why wouldn't you invest in your brand?

‍Coke is an excellent example of this; its market capitalisation including brand value is $120B, of which over half, approx. $70B is made up directly of brand value.
‍‍Already by 2015 around 84% of the value of all businesses listed on the S&P 500 was intangible value, of which brand value is a key component.
‍‍In addition, strong brands can command a 13% price premium over weak brands, and 6% above the average brand.


Daniel Hewlett

Daniel is a multi-award winning, strategically-driven creative director with over sixteen years integrated agency experience in both Europe & AsiaPac.