Measuring brand value
In the ongoing debate over the return on investment of marketing expenditures, the ANA wants to bring to the forefront the controversial issue of measuring brand value. The ANA's goal is to develop a uniform metric that provides a clear picture of what marketing efforts contribute to a company's bottom line — a metric that CMOs, CFOs, and CEOs can all agree on.
“We want to create uniformity and give marketers a standardized way to measure brands,” says Bob Liodice, president and CEO of the ANA.
To achieve that objective, the ANA has teamed with the Marketing Accountability Standards Board (MASB) of the Marketing Accountability Foundation in a new initiative dubbed the Brand Valuation Model Project. It's an idea that Liodice had been mulling over for some time. “I met with James Gregory at CoreBrand two years ago and he told me he wanted to get the value of brands on a marketer's balance sheet. We both agreed that it was an important metric, but that no uniform way to measure brand value currently exists.”