Deloitte is the world’s most valuable and strongest commercial services brand
Deloitte, with an impressive 21% increase in brand value to USD41.8 billion, has once again secured its position as the world’s most valuable commercial services brand, according to a new report by Brand Finance, the world’s leading brand valuation consultancy.
Leading the sector, Deloitte saw record revenues of nearly USD65 billion in 2023, propelled by strategic investments and collaborations. Deloitte's expanded partnership with NVIDIA stands out, harnessing AI technology to develop cutting-edge GenAI solutions. Furthermore, collaborations with industry leaders like Google Cloud showcase Deloitte's commitment to driving environmental change by offering solutions to help organisations reduce emissions.
This year, Deloitte has also claimed the title of the world’s strongest commercial services brand and the sixth strongest brand in the world with a Brand Strength Index (BSI) score of 90.6 out of 100. Deloitte has been recognised as one of the world's best workplaces, reflecting its dedication to fostering a positive impact on individuals and communities.
"In the commercial services sector, a significant trend is emerging as industry leaders partner with tech firms and swiftly adopt technologies like generative AI. These partnerships aim to provide clients with digitisation solutions, positioning the companies as advisors on AI and other emerging technologies. This forward-thinking approach to digitisation enhances efficiency, competitiveness, and future success, ultimately elevating their brand value and fostering growth."
Annie Brown, General Manager of UK Consulting, Brand Finance
EY sits in third
EY (brand value up 20% to USD30.8 billion) maintains its standing as the second most valuable professional services brand among the Big 4, behind Deloitte, and secures the third spot in the overall commercial services ranking.
The 20% increase in brand value is attributed to enhanced financial performance, with 2023 marking a pinnacle year characterised by record global revenues and sustained significant growth. Like competitor Deloitte, EY's success can be attributed to strategic investments in pivotal partnerships, cutting-edge technologies, and continuous training initiatives to upskill its workforce.
PWC and KPMG brand values fall short
Fellow Big 4 firms, PWC (brand value USD24.7 billion) and KPMG (brand value USD14.2 billion), have not performed as well as their peers, recording a 3% and 4% dip in brand values, respectively.
KPMG maintains its position as the trailing member of the Big Four, demonstrating the slowest growth in global sales among accountancy and consulting firms in the latest financial year. These outcomes follow a challenging period for KPMG across various markets, marked by audit scrutiny at three failed US banks, a governance scandal in its Dubai operations, and a record regulatory fine in the UK.
Mixed results for payment services brands
American Express is the most valuable payment services brand and the second most valuable commercial services brand in the ranking, with a brand value of USD36.5 billion.
American Express has launched strategic marketing campaigns to increase recognition, including partnerships with TikTok to target Gen Z consumers and initiatives like "Keep Doing You," showcasing rewards for everyday activities. Additionally, its collaboration with Dentsu Creative champions small businesses, using local shops to promote cashback offers.
VISA has witnessed a 5% decline in brand value, now at USD28.0 billion, amid concerns about a potential spending slowdown. The lowered revenue forecasts stem from apprehensions about consumer spending, exacerbated by months of high inflation and escalating borrowing costs. This economic landscape has prompted consumers to reassess their travel and major purchase plans, placing card companies like VISA on the defensive as they navigate these shifting dynamics.
Mastercard has experienced a notable decline in brand value this year, marking a decrease of 12% to USD21.8 billion, primarily attributed to a reduction in overall brand strength. Brand Finance's latest market research reveals that Mastercard has diminished scores in familiarity and reputation, which is particularly evident in China and India. Mastercard has reached a significant milestone, being accepted at 100 million locations worldwide.
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts 6,000 of the biggest brands to the test and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 100 most valuable and strongest commercial services brands are included in the Brand Finance Commercial Services 100 2024 report.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
The full ranking, additional insights, charts, more information about the methodology and definitions of key terms are available in the Brand Finance Commercial Services 100 2024 report.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations 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 over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization 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.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
