Defining the value of a brand is one of the most complicated processes in the business world. Everyone wants their brands to be "valuable," but no one is entirely sure how to achieve that goal. Those who reach the top must be careful, because if they don't do their homework, one day they'll discover they're not as appreciated as before. According to Brand Finance, that's exactly what happened to Apple: after five years at the helm, the Cupertino giant ceded the top spot to none other than Google.
The Value of a Brand
The author and marketing expert Seth Godin, who created the old portal Yoyodyne in 1995 (which was acquired by Yahoo! three years later), says that a brand's value is represented as a total that includes how much extra money a consumer is willing to pay, how often they choose it, what their expectations, memories, stories, and relationships with it are. A concept closely associated with brand value is scarcity. Apparently, a brand conveys greater value when it has thousands of people lining up at its stores to get that last gadget, although that can change overnight. A failed product, lack of innovation, decisions that seem wrong in the eyes of consumers, and increased competition quickly erode value.
Why Apple Slipped
During the last five years, Apple remained at the top of the list as the most valuable brand on the planet. But in 2017 things have changed, and the Cupertino giant steps down to leave the first place to Google. The report published by Brand Finance indicates some of the reasons why the "Apple brand" lost 27 percent of its value in twelve months. Basically, it tells us about a "loss of faith" among its evangelists, the almost complete disappearance of the famous lines in front of Apple Stores, and the "repeated disappointment" when small adjustments are applied, when much more material changes were expected. In short, Brand Finance suggests that Apple "overexploited" the goodwill of its customers, failed to profit from the Apple Watch, and fails to convince the market that it has truly innovative technologies in its flight plan.
Google's Comeback
Of course, one's loss is another's gain, and it was its 24 percent rise that returned Google to a position it had not occupied since 2011. Despite its constant exploration, Mountain View's strength remains the same as always: search and advertising. Brand Finance reports that desktop advertising is "much more lucrative" than its mobile equivalents, although the so-called "bumper ads" are doing their part. Amazon keeps the third position but is rapidly approaching Apple (53 percent increase), AT&T jumped two positions with a solid 45 percent, and due to a modest 13 percent increase, Microsoft moves down one spot, closing the Top 5.
