Last year the BrandZ ranking of “the most valuable brands in the world” was criticized for ranking Apple below IBM. When Apple had the 2nd largest market capitalization among US companies.
Now, lo and behold, this year’s ranking now has Apple at number one, with a staggering 84% increase in value. Last year it was supposed to be worth $83M and this year has jumped enormously to $153M. Granted that Apple had a(nother) good year, but it wasn’t equal to all the years that came before combined! In fact Apple’ market capitalization grew 50% over 2010, but it had grown by over 100% the previous year (a year that BrandZ lifted its value by just 32% (why???).
Now that Apple is listed as the most valuable brand in the world is the credibility of BrandZ restored? I think not – in fact this back-flip makes it look more ridiculous.
And BrandZ appears to be backward looking. Instead of being a future indicator of brand performance, as their marketing spiel claims, BrandZ reports the past. It tells what everyone already knows.
Personally I think it still looks like pseudo-science and pseudo-finance. As do many other such brand equity measures, as discussed in “Brand Value Quackery“.
Professor Byron Sharp, May 2011.