In the early 2000s, technology and telecommunications companies were among the most valuable brands in the world. Fast forward to 2022, and the trend has only continued to grow. Here’s the list of the most valuable brands from 2000–2022.
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What is the true value of a brand in terms of money?
According to Visual Capitalist’s Omri Wallach, for some companies, a brand is simply a means to improve customer engagement and sales. However, for other companies, including some of the world’s largest corporations, a strong brand is considered one of their most valuable possessions.
James Eagle’s animation uses data from Interbrand’s annual brand rankings to chart the evolution of the world’s most valuable brands from 2000 to 2022.
Measuring Brand Value
Valuating a brand can be challenging due to the subjectivity involved.
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The value of a brand is often reflected as an intangible asset, known as goodwill, on a company’s balance sheet. This is because the brand’s influence, such as recognition, customer loyalty, and reputation, can contribute to a company’s overall worth beyond its tangible assets.
Although using goodwill as a representation of a brand’s value is suitable for accounting purposes, it is still a rough approximation and does not accurately determine the true worth of a brand.
Interbrand’s methodology for determining a brand’s strength is based on a consistent formula that takes into account a company’s financial projections, the role of the brand, and its overall strength. The formula employs estimates of the present value of future earnings that a brand is expected to generate.
The Top 10 Most Valuable Brands Since 2000
At the beginning of the 21st century, the internet was a prevalent topic in both the business world and public consciousness. The Dotcom bubble was fueling some of the biggest companies, and brand value at that time was heavily influenced by technology’s prominence:
During the early 2000s, five out of the ten most valuable brands were technology or telecommunications companies, such as Microsoft, IBM, and Nokia.
The remaining five were well-established American firms that were leaders in their respective industries, such as Coca-Cola, General Electric, Ford, and McDonald’s.
However, over the next two decades, many of these brands were replaced by newer and emerging companies. By 2022, only three of the top ten most valuable brands from 2000 were still among the top:
Apple’s brand is now valued at an approximate $482 billion, although it was not present in the top 10 brands of the year 2000.
It’s worth noting that four out of the top five brands on the 2022 list are technology-related, and Amazon, which ranks third, is also considered a technology company. It’s not surprising that the brand value of the top 10 has generally increased, with the exception of Coca-Cola, which has dropped in estimated brand value by $15 billion over 22 years.
In what ways will the most valuable brands develop over the ensuing decades?
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