For the full findings, access the Brand Finance: Why Brands Matter 2020 Report here
For information about the IAA’s Why Brands Matter campaign, click this link
Around US$22 trillion was wiped off the value of publicly listed companies in Q1 2020 as the COVID-19 pandemic spooked markets, investors and consumers, but new research from Brand Finance, published in partnership with the International Advertising Association (IAA), shows that brands have the power to fuel an economic recovery.
Brand Finance’s analysis of 55,000 publicly listed, branded companies worldwide found that although their total enterprise value dropped from US$116.6 to US$94.8 trillion between January and April, it bounced back to $121.0 trillion in September, demonstrating how brands matter to business.
While the global economy as a whole is forecast to contract by -4.4% this year (IMF), branded companies that convey trust to consumers, like Apple, Amazon, Microsoft, Tesla and Visa, have already bounced back from the decline caused by the COVID-19 crisis to record growth of 3.8%.
Brands are among the most valuable assets in a company, accounting for around 20% of total business value on average, according to Brand Finance.
Commenting, Dagmara Szulce, Managing Director of IAA, said: “This report shows us that the importance of brands increases during times of crisis, and that is why we are launching our global multi-channel campaign, Why Brands Matter. Brands communicate the origin, quality and authenticity of a product, but they also convey trust, identity, pride, passion, creativity, innovation and optimism. Strong brands restore consumer confidence, and brand competition can rebuild economic strength. We call on governments and brand owners around the world to work together to create an environment that gives consumers the confidence to invest in brands that matter to them; to foster an environment where brands are protected, nurtured and allowed to fulfil their full potential.”
The report shows how and why brands are a powerful tool for economic revival, allowing consumers to quickly identify the companies and products they like or differentiate between them. Brands are there to protect consumers from the risks that are posed from unregulated, illegal and counterfeit products, giving consumers peace of mind in their purchasing decisions.
David Haigh, CEO of Brand Finance, said: “In times of crisis, brands – especially those most valuable and strongest in their categories and markets – become a safe-haven for capital. Like gold or fine art during past economic downturns, nowadays well-managed, innovative, and reputable brands are what the global economy turns to in the hour of need. There can be no better evidence for why brands matter than the role they have already played and will continue to play in the post-COVID recovery.”
For the full findings, access the Brand Finance: Why Brands Matter 2020 Report here
For information about the IAA’s Why Brands Matter campaign, click this link
About the IAA
The International Advertising Association (IAA) is the world’s only globally-focused integrated advertising trade association with membership representing advertisers, agencies and the media.
Founded in 1938, the IAA has never been more relevant. With so many changes in the way we use advertising to communicate, it’s important for everyone in the industry to have a trusted body they can turn to for advice and support.
The IAA has over 4,000 individual and corporate members spanning marketing, advertising, media, IT communications and academic sectors – all involved in the wide range of brand marketing and marketing communications disciplines. The IAA has presence in most markets through Chapters and education affiliates reaching across 56 countries where we serve the collective interests of the entire marketing communications profession, unlike other bodies that defend only the interests of the sector they represent.
About Brand Finance
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes nearly 100 reports which rank brands across all sectors and countries.
Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Media Contacts
IAA: Dagmara Szulce, Managing Director of IAA
SPQR Communications
Beau Papworth
T: +44 (0) 7890027356
