Thinking
Financial applications for brand valuation
Financial applications for brand valuation
Compared to when Interbrand first pioneered brand valuation in the 1980s, the global business community now widely accepts the importance and value of strong brands—and the significant contribution they make to business value.
This has resulted in an increasingly wide range of business applications for brand valuation, which can broadly be categorized into three areas:
• Brand management
• Strategy/business case development
• Financial
From a brand management perspective, brand valuation is a strategic tool that brings together market, brand, competitor, and financial data into a single, value-based framework within which the performance of the brand can be assessed, areas for improvement identified, and the financial contribution of the brand to business results quantified.
Compared to when Interbrand first pioneered brand valuation in the 1980s, the global business community now widely accepts the importance and value of strong brands—and the significant contribution they make to business value.
This has resulted in an increasingly wide range of business applications for brand valuation, which can broadly be categorized into three areas:
• Brand management
• Strategy/business case development
• Financial
From a brand management perspective, brand valuation is a strategic tool that brings together market, brand, competitor, and financial data into a single, value-based framework within which the performance of the brand can be assessed, areas for improvement identified, and the financial contribution of the brand to business results quantified.
An important output of our valuations is a rigorously analyzed and defendable valuation number. What differentiates us from our competitors is our ability to also provide a rich and insightful brand analysis, delivering value to the business beyond the number alone.
Interbrand’s brand valuation methodology builds a rich understanding of how a brand performs—and should perform—to create economic value. Our approach differs from others because our Brand Strength and Role of Brand analyses also act as diagnostic tools, allowing us to better understand the factors underlying a brand’s strengths and weaknesses, both internally and externally.
Armed with these insights, and by leveraging our global expertise in creating and managing brands, we then deliver recommendations on how to increase brand value and, most importantly, the impact of the brand on business results. This means the valuation exercise delivers value to the business far in excess of the valuation number alone.