[November 14, 2018] |
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Customer Experience Emerges as Critical Factor, Along with Innovation, Boosting Brands in the 2019 BrandZ™ Top 100 Most Valuable US Brands Ranking
Brands that are perceived as innovative and that also provide a great
experience - meeting consumers' needs where and when they are wanted -
grew the most in value in the latest BrandZ™ Top 100 Most Valuable US
Brands ranking, announced today by WPP
and Kantar
Millward Brown.
The ground-breaking BrandZ study ranks the most valuable US brands,
analyzes their strengths, and identifies the key forces driving growth
in this dynamic and complex market. It is the second edition of an
annual report that tracks and anticipates the evolving environment for
brands in the US and charts their changing fortunes.
According to the report, customer experience is as important as being
perceived as innovative for increasing brand value. As Americans engage
with brands in more and more places, the brands that continually
innovate customer experience are winning, growing 200% more than those
that don't.
The new number one, Apple, increased its brand value by 13% in the last
year to $316.1 billion to become the most valuable US brand. Its
continued innovation across an entire ecosystem of services - such as
Apple Pay, iCloud and Siri - that wrap around its key devices including
the new Apple Watch and iPhone X, ensures that Apple increasingly owns
and transforms the user experience in a way that is very meaningful to
consumers.
Netflix grew its value more than any other brand, increasing by 93% over
the last year to $30.2 billion. Benefiting from the growing adoption of
streaming entertainment worldwide, the streaming superpower has
capitalized on personalizing its service with original and entertaining
content and has grown its subscriber base to 137 million, propelling it
to no.28 in the ranking and the second most valuable entertainment brand
behind Disney (News - Alert). Other fastest risers are PayPal (up 88%, no.19)
and Amazon (up 69%, no.3).
Uber, the most valuable newcomer to the ranking (in at no.35, $21.1
billion), provides the best brand experience, according to US consumers,
scoring above Amazon and Apple. It was also one of the most innovative
brands in the ranking, ahead of Amazon and Tesla.
"Innovative companies such as Netflix and Uber are disrupting markets
and creating new ones, while larger brands like Apple continue to shake
things up with data, digital and marketing technology investments to
maintain leadership in the new era of consumer experience. This year's
ranking shows that while US brands are amongst the most innovative in
the world, innovation alone is no longer enough for brands to grow,"
said Tim Wragg, CEO Kantar North America Insights Division.
Beth Ann Kaminkow, CEO of Kantar Consulting Brand & Marketing Americas
continued: "Customer experience is now the greatest amplifier of value
growth. However, US brands are lagging other countries in delivering on
consumers' expectations and letting them experience their innovation.
They will need to focus on improving consumers' experience of their
brand in 2019 by breaking down internal silos and uniting marketing and
sales to design holistically across all channels and touchpoints, for
experience and commerce."
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The 2019 BrandZ Top 10 Most Valuable US Brands
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2019 Rank
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Brand
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Category
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Brand Value (US$ bn)
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Percentage BV Change
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2018 Rank
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1
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Apple
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Technology
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$316.1
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+13%
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2
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2
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Google
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Technology
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$313.3
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+9%
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1
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3
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Amazon
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Retail
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$279.3
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+69%
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3
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4
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Microsoft
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Technology
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$215.5
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+39%
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4
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5
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Visa
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Payments
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$163.9
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+35%
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6
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6
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Facebook
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Technology
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$161.1
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+7%
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5
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7
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McDonald's
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Fast food
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$124.9
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+13%
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8
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8
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AT&T
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Telecom providers
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$106.4
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-7%
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7
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9
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IBM (News - Alert)
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Technology
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$95.3
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-7%
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9
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10
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Mastercard
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Payments
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$91.9
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+66%
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15
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Overall, the BrandZ Top 100 US brands grew 15% in the last year to $3.65
trillion, a combined value that is nearly one fifth (19.6%) of US
GDP. They generate more value for their businesses than brands in any
other country in the world.
"US brands excel at globalization," said WPP's David Roth. "The fact
that they are so entwined in the lives of consumers around the world
means they are often not thought of as American. This has helped to
disconnect them from the political turmoil in the last year. It is an
advantage not shared by brands that are less global and more connected
to their country's DNA. Their independence from the US is further
demonstrated by the fact that they account for roughly half the value of
the BrandZ Global Top 100 ranking."
Other trends highlighted in this year's BrandZ Top 100 Most Valuable US
Brands report and ranking are:
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Polarization of value and premium - brand growth mirrors the US
economy with more brands focused on providing value and premium
offers. Value retailer Walmart and membership retailer Costco grew by
11% to $30.7 billion and 19% to $19.9 billion respectively, while
Apple further cemented its luxury brand credentials with the launch of
the iPhone X. The multinational tech company's most expensive phone
proves that innovation and services can justify a price premium.
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Meaningfully different brands grew 78% more in the last year. A
key driver of brand value growth US brands are among the most
different in the world (only behind Indonesia's top brands). The
fastest risers - Netflix, Paypal, Amazon and Instagram - are all
powered by their difference as are newcomers to the ranking such as
Uber and HBO.
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Newcomers drive big value growth in the ranking - 11 newcomers
joined the ranking this year. Their average value is $10.58 billion,
77% higher than the average for brands that dropped out of the Top
100, indicating the high entry brand value threshold of innovative and
disruptive newcomers to the ranking. Uber was the most valuable
newcomer (no.35, $21.1 billion) followed by Dell (News - Alert) Technologies (no.45)
and Xbox (no.51).
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Strong brands beat the stock market. The BrandZ US Strong
Brands Portfolio increased 19.8% between November 2017 and August
2018, compared with 12.6% for the S&P500. This means they created 1.57
times as much value for shareholders.
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B2B brands - All B2B brands in the BrandZ US Top 100 notched up
huge gains in brand value this year: Accenture (News - Alert) (+30%), Adobe (+66%)
Salesforce (+44%) and Oracle (+18%). As consumer expectations soar
that may soon translate to higher expectations in the business world
too.
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Brands with purpose - More and more consumers are rewarding
brands not merely for making great products but sharing their values.
Nike's promotion of controversial celebrities known for taking a
stand, such as Serena Williams and quarterback Colin Kaepernick, has
helped reinforce consumers' strong emotional connection with Nike.
This year, the brand gained 37% in value and moved up the ranking to
no.18.
The BrandZ Top 100 Most Valuable US Brands report and ranking, as well
as other brand insights for key regions of the world and 18 market
sectors, are available online here.
The reports, rankings, charts, articles and more can also be accessed
through the BrandZ app, which is free to download for Apple IOS and all
Android devices from www.brandz.com/mobile
or by searching for BrandZ in the iTunes or Google Play app stores.
ENDS
NOTES TO EDITORS:
Background and methodology
Commissioned by WPP, the valuation behind the BrandZ™ Top 100 Most
Valuable US Brands was conducted by brand equity research experts Kantar
Millward Brown. The methodology mirrors that used to calculate the
annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now
in its 13th year.
The ranking combines rigorously analysed financial data from Bloomberg (News - Alert)
and Kantar Worldpanel with the opinions of over 164,000 America
consumers gathered for over 1,500 brands in nearly 130 categories. The
ability of any brand to power business growth relies on how it is
perceived by customers. As the only brand valuation ranking grounded in
consumer opinion, BrandZ's analysis enables US brands to identify their
strength in the market and provides clear strategic guidance on how to
boost value for the long-term.
The BrandZ Top 100 Most Valuable US Brands is the most definitive and
robust ranking of the country's brands available, and the brands
ranked all meet these eligibility criteria:
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Brand is originally created in the US
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The brand is owned by a listed company or a private company with
financials publicly available
-
Unicorns (which have a valuation in excess of $1billion) founded in
the US have their most recent valuation available in the public domain
The suite of BrandZ brand valuations and reports also includes China,
India, Latin America, Brazil, Spain, UK, France, Germany, Australia,
South Africa and Italy.
About Kantar
Kantar is the world's leading marketing data, insight and consultancy
company. We know more about how people live, feel, shop, vote, watch and
post worldwide than any other company. Working across the entire sales
and marketing lifecycle, we help brands uncover growth in an
extraordinary world. Kantar is part of WPP and its services are employed
by over half of the Fortune 500 companies in 100 countries. For further
information, please visit us at www.kantar.com.
About WPP
WPP is the world leader in communications services. The company provides
a comprehensive range of services including digital, ecommerce and
shopper marketing; advertising & media investment management; data
investment management; public relations & public affairs; brand
consulting; health & wellness communications; and specialist
communications. For more information, visit www.wpp.com
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