'Transparent Innovation' Pushes Google Back to the Top of the BrandZTM Top 100 Most Valuable Global Brands, Increasing its Worth to $229 billion

News provided by

Millward Brown

08 Jun, 2016, 04:31 IST

LONDON, June 8, 2016 /PRNewswire/ --

The ability to disrupt sets apart the fastest growing brands 

Continual innovation, increased revenue from advertising, and growth in its cloud business has helped Google reclaim from Apple the no.1 position in the 2016 BrandZTM Top 100 Most Valuable Global Brands ranking, released today by WPP and Millward Brown. The brand increased its value 32% to $229bn, while last year's leader Apple dropped to no.2 after declining -8% in value to $228bn. Microsoft remains at no.3, growing 5% to $122bn, while Facebook (+44%, no.5) and Amazon (+59%, no.7) entered the Top 10 for the first time. The total brand value held by the Top 100 rose 3% year on year to hit $3.4 trillion.

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The BrandZ data and analysis indicates that this was a stable year for the world's most powerful brands in the face of global financial pressures, including the economic slowdown in China. However the brands that innovated, and then showcased their innovations to consumers through the brand experience, have achieved standout growth with Google, Amazon and Facebook acting as prime examples.

Disruption was the dominant trend, with brands changing the status quo with their offerings in a number of ways, often beyond the use of digital technologies. Brands of all kinds moved to build a multi-faceted ecosystem around the consumer's needs and desires, often by diversifying into new categories. Amazon built its own logistics network using independent contractors, which enabled it to offer flexible and one-hour delivery options, and started producing its own content. Facebook began hosting publishers' original content to keep members active. Starbucks (+49%, no.21) moved into the ecommerce space with a 'tap and go' app, and enhanced its cold drinks and savoury ranges and offered beer and wine to extend its relevance.

"The brands that thrive, regardless of sector, are those that behave like challengers and adopt disruptor models and mindsets," said David Roth, CEO EMEA and Asia, The Store WPP. "They're shaking up other categories with innovation that goes beyond new products or technologies - transforming the way a service is delivered, enhancing the consumer experience or changing a format. The power these brands already hold, combined with the strength of their platforms, is enabling them to quickly and successfully move across sectors."

The BrandZ Top 10 Most Valuable Global Brands 2016 

   
    Rank                             Brand value   Brand value
    2016      Brand      Category     2016 ($M)       change     Rank 2015
          1 Google     Technology         229,198           +32% 2
          2 Apple      Technology         228,460            -8% 1
          3 Microsoft  Technology         121,824            +5% 3
          4 AT&T       Telecoms           107,387           +20% 6
          5 Facebook   Technology         102,551           +44% 12
          6 Visa       Payments           100,800           +10% 5
          7 Amazon     Retail              98,988           +59% 14
          8 Verizon    Telecoms            93,220            +8% 7
          9 McDonald's Fast food           88,654            +9% 9
         10 IBM        Technology          86,206            -8% 4

Key trends highlighted in this year's BrandZ Top 100 study include:

  • Strong brands outperform the market.  Brands that appear in the BrandZ Top 100 Most Valuable Global Brands ranking consistently deliver a better financial performance than brands that are not included, thereby generating a superior return for shareholders.
  • Disruption is a catalyst for value growth. The categories that increased in value were all either shaken up by challenger brands founded on a unique and meaningful proposition, such as Under Armour and Victoria's Secret in the apparel category (+14%), or innovated to a high degree in response to a new trend, such as the brands in the fast food category (+11%) which successfully responded to global demand for healthier products.
  • Innovation is the main growth driver - but it must be seen and felt by consumers. The brands that are the strongest innovators have increased their value the most over the 11 years of BrandZ Top 100 rankings. However, to have an impact on brand value, innovation must be clearly communicated and delivered through the brand experience: the brands that are perceived as innovative by consumers - which include Disney (no.19) and Pampers (no.37) - grew nine times faster than those seen as less innovative.
  • Apparel is the fastest growing category, rising 14% to $114bn. There is an emphasis on high performance, with brands including Nike (+26%) and Under Armour (a new entry) launching specialist premium lines, incorporating technology such as heart monitors into their clothing, and integrating sportswear with free apps to provide a total consumer experience.
  • B2B is a category of efficient businesses but inefficient brands. They are perceived as more responsible than B2C brands, better to work for, good value and stable, but not as exciting or dynamic. B2B brands are in fact highly innovative; ensuring they are credited as such requires strong and meaningful brand communication. SAP (no.22) and Adobe (a new entry at no.100) are among the B2B brands being perceived as innovative by customers.
  • Disruption extends to the ranking itself. Close to half (46) of the brands in the 2016 Top 100 entered the ranking after it was first launched in 2006; 54 have been there since the inaugural ranking. This shows how a strong brand can sustain its value over time, but also illustrates the potential that exists for new brands to successfully shake up the status quo.
  • Strong emotional connections are boosting local brands. With a clear understanding of their consumers' needs, local brands are gaining market share at home and, with improved functionality and marketing, are also winning share in new regions. China's Huawei (no.50, +22%), for example, has rapidly globalised and taken market share from both Apple and Samsung.

Doreen Wang, Millward Brown's Global Head of BrandZ, comments: "By stretching their brands in innovative ways and expanding into new categories, the strongest brands in the Top 100 are increasing their penetration and their relevance in people's day-to-day lives. There is a risk in doing this, however: it blurs the lines between categories and can leave brands struggling for identity. Defining and articulating a very clear positioning and purpose will play a more crucial part than ever in building a strong, distinct brand."

The BrandZ™ Top 100 Most Valuable Global Brands report and rankings, and a great deal more brand insight for key regions of the world and 14 market sectors, are available online here. A new suite of interactive smartphone and tablet applications is available for free download for Apple IOS and all Android devices from www.brandz.com/mobile or search for BrandZ in the respective iTunes or Google Play app stores.

NOTES TO EDITORS: 

About the BrandZ™ Top 100 Most Valuable Global Brands Ranking 

Carried out by WPP's marketing and brand consultancy Millward Brown, the BrandZ™ Top 100 Most Valuable Global Brands ranking is now in its eleventh year. It is the only study to combine measures of brand equity based on interviews with over three million consumers globally about thousands of global 'consumer facing' and business-to-business brands with a rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel) to separate the value that brand plays in driving business and shareholder value. Consumer perception of a brand is a key input in determining brand value because brands are a combination of business performance, product delivery, clarity of positioning, and leadership. The ranking takes into account regional variations since, even for truly global brands, measures of brand contribution might differ substantially across countries.

About Millward Brown 

Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Specialist global practices include a leading Digital practice (focused on digital effectiveness), Firefly Millward Brown (a global qualitative network), a Neuroscience Practice (using neuroscience to optimize the value of traditional research techniques), and Millward Brown Vermeer (a strategy consultancy helping companies maximize financial returns on brand and marketing investments). Millward Brown operates in more than 55 countries and is part of Kantar, WPP's data investment management division. Learn more at www.millwardbrown.com.

About WPP 

WPP is the world's largest communications services group with billings of US$73 billion and revenues of US$19 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications. The company employs 194,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit www.wpp.com. WPP was named Holding Company of the Year at the 2015 Cannes Lions International Festival of Creativity for the fifth year running. WPP was also named, for the fifth consecutive year, the World's Most Effective Holding Company in the 2016 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications. In 2016 WPP was recognised by Warc 100 as the World's Top Holding Company (second year running).


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