A recognized brand is among the most valuable intangible assets


TPG Brand Strategy is all about building brand value.  Building a strong recognizable brand.   Creating a consistent brand message that connects with your core audience in a relevant way.  And More…    This article talks to the relevance of understanding how your brand truly influences the book value of your company.   Brand is the single largest asset you have, and a well built strategy with consistent messaging does more to enhance brand value than perhaps any other effort you put forth in your company as a percentage of overall value.   Good reading on how to build brand value in today’s markets.

Brand Value In The Global Economy


January 27, 2014



Do we know enough about how brands impact the global economy? Is it worth having this information? Dr. Francis Gurry, General Director of the World Intellectual Property Organization (WIPO), would answer ‘No’ to the first question and ‘Yes’ to the second one. Indeed, his introduction to the recent WIPO report is quite clear: “A recognized brand is among the most valuable intangible assets. Despite this cross-cutting importance, evidence of how branding and trademark use affect economy-wide performance is still limited – especially when compared with the large volume of studies carried out on the patent innovation nexus”. Thus, the WIPO report aims at covering this gap in the research and providing an exploration of the statistics on worldwide brand and trademark investment to increase our understanding of the role these intangible assets play in coping with competition and economic change. Indeed, the report offers a captivating message for corporations that want to consider their brand strategy critically, despite it is designed to be read by policy makers.

First, estimates report that in 2011 global investments in branding were worth USD 466 billion with an increasing proportion of the total in middle-income economies such as India and China. In fact, branding investments as percentage of GDP steadily increased in China between 1998 to 2010. At the same time, US statistics report a drop in branding investments from more than 1.2% to less than 0.8% of GDP. This change is particularly significant if we consider the parallel activity in filing trademarks. Indeed, trademark filings (based on class counts) in middle-income economies represents 43% of the world wide filing activity in 2011, compared with 35% in 2006. The same statistics for high-income economies show a decrease of ten percentage points from 2006, reaching 45% of the worldwide filings in 2011. The face of branding has changed in the last two decades of globalization. As a result, there is a pressing need for experts and skilled branding personnel in expanding nations like India, China, but also in Brazil, Korea and eastern European countries. Indeed “brands and trademark retain a local character that is persistent over time, partially due to language-related factors”. This phenomenon challenges investments and expansion strategies.

There are various drivers for this shift in branding and trademark behaviors. The main cause is due to changes in companies’ strategic approaches. To sharpen their competitive edges, corporations increasingly move into a ‘servitization’ of their business models offering bundles of goods, services and integrated knowledge. Brands and trademarks are the natural extension of this evolution of business models, which attempt to protect the investments made and appropriate more the added value of the customers. Furthermore, institutional and regulatory changes and the standardization of international trademark filing procedures – such as the Madrid protocol – reduce uncertainty in cross-country legal protection and inject further positive spill-overs to the system.

Second, brand values are increasingly important as a share of companies’ market capitalization, yet the metrics for measuring this are still unsystematic. For instance, the WIPO report compares the results of three famous market research rankings in which a well known company such IBM has a brand value that is worth 27% of its market capitalization in one syndicated research, 56% in the second one and 19% in the third. On the accounting side there is no more certainty, as brand value is included with subjective intangible assets such as goodwill. From these statistics we could infer that there is a demand for a clear-cut and transparent estimate of the intangible assets to increase intelligibility of companies’ value creation potentials. For example, Ikea in 2012 disclosed its brand value as part of a financial transaction and in turn market research companies converged in their estimations. A more systematic and transparent measure of brands could generate greater trust and positive appreciation of stakeholders in companies’ ability to achieve success in their competitive environment. For example, increasing disclosure of brand value could positively influence estimation of returns on investments.

Third, the rise of market for brands is another intriguing aspect investigated by the report. Indeed, while the markets for technology have received a great deal of attention, market for brands still remains in the shadows, despite its economic relevance. For instance, WIPO research reports the results of a recent survey carried out by the International Licensing Industry and Merchandisers’ Associations for the US market: between 2011 and 2012 licensing royalties rose by 2.5% to a total value of USD 5.5 billion. Furthermore, the total value of international trademark and licensing transactions has increased rapidly between 2006 and 2011 especially among organizations located in the same country. This research leads us theorizing about the role of brand licensing, franchising and M&A deals. These could be used as recurrent schemes to commercialize and transfer IP rights, to expand local economies and to enter into new fields across industrial sectors. For instance, from an international perspective, the report highlights how Asia, Latin America and Africa are becoming important markets for US trademarks: in all these countries the value of US trademark licensing receipts increased by at least 2 per cent from 1996 to 2011, while European countries became less important as export destinations with a drop of 7% in the same time frame.

In conclusion, the WIPO report opens an interesting debate on the role of trademarks and brand value in the global economy. On one hand, report provides food for thought for policy makers and their role in designing trademark registration processes that promote accessibility across the economies and effectiveness of legal protection. On another hand, corporations can read the report with a critical view to the role of trademarks and brand value on their competitive advantage. Particularly, the report suggests some essential questions:

  • How do branding and trademark strategies integrate with innovation programs to secure adequate resources for future R&D projects?
  • How do brands protect competitive niches as well as extend market possibilities across industries and countries?

While these questions are not answered in the report, we believe that it is still an important contribution as“To raise new questions, new possibilities, to regard old problems from a new angle, requires creative imagination” (Albert Einstein)

Contributed to Branding Strategy Insider by: Giulia Solinas, PhD, Doctoral Researcher in Strategy, Faculty of Management, Cass Business School, City University London

Written by

56 Comments to “A recognized brand is among the most valuable intangible assets”

  1. First of all I would like to say fantastic blog! I had a quick question
    which I’d like to ask if you don’t mind. I was curious
    to find out how you center yourself and clear your
    mind before writing. I’ve had trouble clearing my mind in getting my thoughts
    out there. I do enjoy writing however it just seems like the first 10 to 15 minutes are generally lost simply
    just trying to figure out how to begin. Any ideas or hints?
    Many thanks!

  2. Anonymous says:

    Woah this weblog is excellent i really like reading your posts. Keep up the good work! You understand, lots of persons are searching round for this info, you could help them greatly.

  3. Anonymous says:

    Very great post. I just stumbled upon your blog and wanted to mention that I’ve truly enjoyed surfing around your blog posts. After all I will be subscribing for your feed and I am hoping you write once more soon!

  4. Anonymous says:

    I’m extremely impressed with your writing talents well as} with the structure for your blog. Is this a paid topic or did you customize it your self? Anyway stay up the nice quality writing, it is uncommon to peer a great blog like this one today..

  5. Joeann says:

    Touche. Great arguments. Keep up the great work.

  6. replica bags says:

    A recognized brand is among the most valuable intangible assets

  7. Dalton says:

    I’m gone to say to my little brother, that he should also pay a visit this
    weblog on regular basis to take updated from latest gossip.

  8. Bella says:

    This is the right web site for anyone who really wants to find
    out about this topic. You know so much its almost tough to argue
    with you (not that I actually would want to…HaHa). You definitely put a brand new spin on a topic which has been written about
    for decades. Wonderful stuff, just great!

  9. Elisabeth says:

    I like the helpful information you provide in your articles.
    I will bookmark your blog and check again right here frequently.
    I am reasonably sure I’ll be told many new stuff right
    here! Best of luck for the next!

  10. Maximilian says:

    Hi, the whole thing is going sound here and ofcourse every one is
    sharing information, that’s in fact fine, keep up writing.

  11. I really like what you guys are up too. This sort of clever
    work and coverage! Keep up the amazing works guys I’ve included
    you guys to blogroll.

  12. charles edward krasny ergen says:

    Hi there, You have done an excellent job. I will definitely digg it and personally suggest to my
    friends. I’m confident they’ll be benefited from this web site.

  13. charles edward krasny ergen says:

    Marvelous, what a weblog it is! This web site provides helpful facts to us, keep it up.

  14. Sheri says:

    I believe that is among the most important information
    for me. And i’m happy studying your article. But wanna observation on few common issues, The site taste is wonderful, the articles is
    truly excellent : D. Good process, cheers

  15. Latonya says:

    This article will help the internet people for setting up new web site or even
    a blog from start to end.

  16. What’s up everyone, it’s my first go to see at this web page, and piece of writing is actually fruitful in support of me, keep up posting these articles.

  17. I just want to mention I am very new to blogging and definitely enjoyed this page. Very likely I’m want to bookmark your blog . You really have fantastic stories. Kudos for sharing your website.

  18. Hipolito M. Wiseman says:

    I simply want to mention I am just all new to blogging and site-building and truly liked your web site. Probably I’m want to bookmark your blog post . You really come with tremendous writings. Many thanks for sharing with us your blog.

  19. Anonymous says:

    I for all time emailed this webpage post page to all my friends, because if like to read
    it after that my contacts will too.

  20. Anonymous says:

    I simply couldn’t depart your website prior to suggesting
    that I really enjoyed the usual information a person supply for your visitors?
    Is gonna be back steadily to check out new posts

  21. japandrop says:

    Heya i am for the first time here. I came across this board and I find It
    really useful & it helped me out a lot. I hope to give something back and aid others like you helped me.

  22. I simply want to tell you that I’m very new to weblog and definitely savored you’re blog site. Almost certainly I’m planning to bookmark your website . You actually have beneficial stories. Thanks a lot for sharing your blog.

  23. Anonymous says:

    I delight in, result in I found exactly what I was taking a look
    for. You’ve ended my four day long hunt! God Bless you man. Have a great
    day. Bye

  24. r says:

    Howdy would you mind letting me know which webhost
    you’re working with? I’ve loaded your blog
    in 3 completely different browsers and I must say this blog loads a lot quicker then most.

    Can you recommend a good web hosting provider at a reasonable
    price? Kudos, I appreciate it!

  25. GABRIEL says:

    This really answered my downside, thank you!

  26. Anonymous says:

    I have been browsing on-line more than three hours today, yet I never found
    any fascinating article like yours. It is lovely
    value enough for me. Personally, if all site owners and
    bloggers made good content as you did, the internet will likely be
    much more helpful than ever before.

  27. torre says:

    Interesting read , I am going to spend more time learning about this subject

  28. Sandra says:

    Thanks for sharing your info. I truly appreciate your efforts
    and I will be waiting for your next post thank
    you once again.

  29. Anonymous says:

    Informative article, just what I needed.

  30. Anonymous says:

    Thanks a bunch for sharing this with all people you actually know what you’re speaking approximately! Bookmarked. Kindly additionally talk over with my web site =). We could have a link change arrangement between us!

  31. Hello! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Wonderful blog and amazing design and style.|

  32. Anonymous says:

    Wow, superb weblog structure! How long have you ever been blogging for? you made blogging glance easy. The whole look of your site is excellent, as neatly as the content material!

  33. jordan says:

    Hi, just wanted to tell you, I loved thi bloig post. It was helpful.
    Keep on posting!

  34. Google says:

    The details mentioned within the write-up are a number of the most effective available.

  35. mattew says:

    You can definitely see your enthusiasm in the work you write. The world hopes for even more passionate writers like you who aren’t afraid to say how they believe. Always go after your heart.

  36. fleece says:

    This web site really has all of the info I needed about this subject
    and didn’t know who to ask.

  37. sam says:

    Wow, this piece of writing is good, my younger sister is analyzing such things,
    therefore I am going to convey her.

  38. steve charcoal says:

    I always spent my half an hour to read this blog’s content everyday along with a mug of coffee.

  39. Anonymous says:

    Excellent website. A lot of useful information here. I am sending it to some friends ans additionally sharing in delicious.
    And of course, thanks for your effort!

  40. switcheasy says:

    After going over a number of the articles on your web page, I seriously
    appreciate your technique of blogging. I added it to my bookmark website list and will be checking back in the near future.

    Please visit my web site too and let me know what you think.

  41. Anonymous says:

    Wow that was odd. I just wrote an incredibly long comment
    but after I clicked submit my comment didn’t show up.
    Grrrr… well I’m not writing all that over again. Regardless,
    just wanted to say fantastic blog!

  42. Anonymous says:

    I have read several good stuff here. Certainly worth bookmarking for revisiting. I wonder how so much effort you place to make the sort of wonderful informative web site.

  43. Dorothy says:

    This page truly has all the information I wanted
    about this subject and didn’t know who to ask.

  44. matt says:

    I just couldn’t go away your website prior to suggesting that I extremely loved the standard info a person supply for your guests? Is going to be again regularly in order to check out new posts

  45. Brandie says:

    Thank you for sharing your info. I truly appreciate your efforts and I
    am waiting for your further write ups thanks once again.

  46. Mellissa says:

    Excellent website. Lots of helpful information here.
    I am sending it to some pals ans additionally sharing in delicious.

    And obviously, thanks to your sweat!

  47. Cody says:

    Awesome issues here. I’m very happy to look your article.

    Thank you a lot and I am taking a look forward to touch you.
    Will you please drop me a mail?

  48. Anonymous says:

    I am really inspired along with your writing skills as well as
    with the structure on your blog. Anyway stay up the nice quality writing,
    it is rare to peer a great blog like this one nowadays..

  49. mattz says:

    Hi there! Would you mind if I share your blog with my twitter group? There’s a lot of folks that I think would really appreciate your content. Please let me know. Many thanks

  50. Kym says:

    You could certainly see your skills within the article you write.

    The arena hopes for more passionate writers such as you who are not afraid to mention how
    they believe. Always follow your heart.

  51. Anonymous says:

    Usually posts some really fascinating stuff like this. If you are new to this site.

  52. Google says:

    Usually posts some quite intriguing stuff like this. If you are new to this site.

  53. Anonymous says:

    The details mentioned in the post are some of the most effective out there.

  54. Anonymous says:

    Very few sites that come about to become comprehensive beneath, from our point of view are undoubtedly effectively worth checking out.

  55. Anonymous says:

    very couple of internet sites that occur to be detailed beneath, from our point of view are undoubtedly well really worth checking out

  56. Anonymous says:

    “I am so grateful for your article.Thanks Again. Awesome.”

Leave a Reply