Three decades ago 95% of the average corporation’s value consisted of tangible assets.
Today 75% of that average corporation’s value is intangible. Corporate brand and reputation represent more than 40% of the top company’s market capitalization.
A business’s most valuable asset is its good name, its brand and reputation, because behind every successful business there is a great brand.
Today more than ever, studies and professionals recognize the benefits of investing in branding, but companies sometimes have a difficult time connecting the line between the power of a brand and the impact on its business. Recent studies quantify a brand’s financial outcome for a business and the qualitative judgments on the positive impact of branding. Brands with strong reputations generate 31% more return to shareholders than the MSCI World Index.
Brands have evolved beyond a single logo and a tagline to be the justification for dozens of other purposes. People engage with brands on an intimate level of individual experiences. Many sources give evidence that supports the notion that the power of a strong brand is now more compelling than ever.
At TOTEM Branding, we work so that the impact of branding is not limited to just metrics; it can be felt in the business results. It is therefore clear from all this that no matter which way you approach it great branding drives value. Branding is never an expense; it is always an investment.