World’s first financially quantified analysis shows brand proposition and identity at core of growth and ROI in brand value creation.
WPP brand consultancies, The Partners and Lambie-Nairn, in collaboration with leading global research agency Millward Brown, have today launched a global research report – ‘The Brand Value Growth Matrix’ – which proves growth in brand value* is led by a strong brand proposition and identity. The study also shows that great advertising drives significantly greater growth in brand value when supported by great branding, but is vastly less efficient when branding is weak.
‘The Brand Value Growth Matrix’ report, which draws on ten years of ‘BrandZ’ valuation data (between 2006 and 2015) combined with 3 million global consumer opinions, shows that a strong brand proposition and a distinctive identity give substantial financial value to a business.
Key findings from the study are:
- Brands with a strong brand proposition & identity and strong advertising have increased their brand value by 168% over ten years
- Brands with strong advertising but weaker branding have grown in value by only 27% compared to 21% growth where both advertising and branding are weak
- Growth in value of 76% occurs where branding is strong and advertising is not
Jim Prior, CEO of The Partners and Lambie-Nairn, commented on the significance of the results: “The data from the study enables brand owners to prioritise, plan and manage their brand building efforts more effectively, drive superior value into their brands and significantly enhance ROI.”
The findings prove that investing in brand positioning and identity produces distinctly stronger returns in brand value when compared to, or used in conjunction with strong advertising. This data will enable brand owners to prioritise, plan and manage their brand building efforts more effectively, drive superior value into their brands and significantly enhance their marketing ROI.
“The most remarkable finding from this study is the extent of the brand value growth that comes from establishing a strong proposition and identity at the heart of a brand. The data clearly demonstrates that great advertising is, by itself, insufficient and inefficient– it needs to be underpinned by broader, deeper strategic and creative definitions. While brand consultancies have long argued this point in principle, this data clearly shows it,” concluded Prior.
*Brand value is the dollar amount BrandZ estimates a brand contributes to the overall financial value of a company.
