“My brand's bigger than your brand” – How not to get caught in the brand valuation trap

Jonathan Knowles
Type 2 Consulting, based in New York

Pat LaPointe
MarketingNPV

Like moths to a flame, marketers are attracted to published rankings of brand value to see how their brand compares to those of key competitors, and how much it went up or down year-on-year. These rankings cater to both the basic human instinct of the need for comparability and to marketers' desire to demonstrate that their investments are creating tangible shareholder value.

Brand valuation is regarded by many marketers as providing the definitive proof of the business value of marketing. Their assumption is that the ability to ascribe a single, financial figure to a brand will elevate their status in the eyes of their numerically endowed colleagues in finance and give the CEO the answer she's looking for to the question, “What are we getting for all this marketing spending?”