Dubai: Technology stocks are soaring…and not just on the stock markets. Even their brand values are.
Led by Google, Apple and Amazon, tech brands occupied all of the key positions in the Top 10 rankings for the world’s “most valuable brands”.
Google’s brand value is now pegged at a staggering $302.06 billion, up 23 per cent from last year, while Apple’s come to $300.59 billion, according to the “BrandZ Top 100 Most Valuable Global Brands” rankings put out by the advertising behemoth WPP and research consultancy Kantar Millward Brown.
The two positions remain unchanged for a second straight year. (As for their market capitalisation, Google's was $753.69 billion and Apple's at $932.65 billion as of May 25).
Amazon vaulted to a third spot and overtaking Microsoft, with a brand value of $207.59 billion.
China’s Tencent ($178.99 billion) and Facebook ($162.1 billion) follow in fifth and sixth, while fourth-placed Microsoft was pegged at $200.98 billion.
Of the non-tech, non-digital entities, Visa had the highest ranking, in seventh with a brand value of $145.61 billion and ahead of McDonald’s ($126.04 billion).
Tech, digital dominate
But in the Top 100 rankings, tech and digital continued their sway.
And nothing seems likely to get in their way.
“In 2016, the proportion of tech-related was 50 per cent of the value from 33 brands,” said Peter Walshe, the BrandZ Global Strategy Director at Kantar Millward Brown. “In 2017, went up to 54 per cent and this year it is 37 brands accounting for 56 per cent of value — an all-time high.
“Back in 2006, there were 30 brands accounting for 37 per cent value.”
Other numbers back up the tech gains further — in dollar terms, tech brands added more than twice ($348 billion) ahead of the next most successful category, which was retail, up $149 billion.
But retail’s gain comes with a rider — they are driven by Amazon’s leap as well as that of Alibaba, which broke into the Top 10 for the first time after placing 14th last year.
The BrandZ rankings are based on polling 3 million consumers globally, on their views related to thousands of brands. These are then matched with the financial and business performance of each company owning the brand and a dollar value is assigned to its value.
Clearly, some of the issues tech/digital media brands have faced in recent times — the surge in fake news, data erosion, etc. — do not seem to have left a mark on them, in terms of brand value.
To this Walshe says, “The data protection controversies are more recent and will not be greatly represented in this year’s values. It remains to be seen what any effect might be.
“But both brands (Facebook and Google) have continued to innovate and develop highly attractive services for consumers… who continue to respond positively to brands that make their lives easier.”
The luxury category too can take positives from the latest rankings, as can banking and insurance, all of which have seen their brands gain 20 per cent in value terms. “In fact, for the first time, all categories show annual growth,” Walshe added.
McDonald's goes two notches up
If there is a surprise package, it will be McDonald’s.
It had ushered in quite a few changes on the operational and management side, and finally these seem to be bringing about the desired results.
It gained two spots to be at eighth in the WPP-Kantar list.
“McDonald’s has actually done very well in a number of regions by expanding its menu in a relevant way as well as utilizing technology for faster service,” said Walshe.
“For example, the tie-up with Uber Eats is being well received.
“Its brand experience is well rated, it has a strongly defined imprint and backed by strong advertising and communications.” (McDonald’s brand value in dollar terms is now set at $126.04 billion.)
“Consumer grocery type brands have not grown as fast over time as they are under greater pressure in established markets, particularly Europe,” said Walshe.
