David Haigh, founder and CEO of Brand Finance PLC, recently shared insights on how brand valuation has transformed since the mid-1990s. Speaking on the "Brand & New" podcast, Haigh described how the practice was once viewed skeptically as a "black box" or "dark art" with opaque and subjective methodologies.
"When we started Brand Finance in the mid-90s, brand valuation was regarded as rather mysterious," Haigh explained. "There was a lack of transparency around how brand strength and value were determined."
However, Haigh notes that the field has evolved significantly over the past few decades. Brand valuation has become increasingly standardised and accepted as a strategic business tool. Key developments include:
- Greater transparency in methodologies
- Adoption of consistent industry standards
- Integration with broader intellectual property valuation
- Increased use by C-suite executives for strategic decision-making
- Growing recognition of brand value's impact on company performance
"Today, brand valuation provides organisations with a way to quantify, assess, and benchmark their intangible assets," Haigh stated. "It allows companies to make more informed decisions about brand investments and communicate value to stakeholders."
Haigh, who has worked in brand valuation since 1991, has played a key role in developing industry standards through his work with the British Standards Institution. He emphasized that as brand valuation techniques have matured, they've become an essential tool for companies looking to leverage their intellectual property and drive growth.
The increased prominence of brand valuation reflects a broader shift towards recognizing intangible assets as critical drivers of business value in the modern economy. As markets evolve, Haigh predicts brand valuation will continue to grow in importance for strategic planning, investor relations, and economic analysis.