The best global brands have lost at least $3.5 trillion (USD) of value from a lack of investment in long-term brand strategy.
This equates to $US200B of lost revenue this year, according to a quarter century of analysis from global brand consultancy Interbrand's annual best global brands ranking.
Interbrand’s longitudinal study has tracked and reported on the value of the world’s biggest brands since 2000.
The cumulative value of the world’s most valuable brands has increased to $3.4T (US) from $988B (USD) since Interbrand first published its ranking.
Interbrand Australia CEO Nathan Birch said he's delighted to see an Australian brand mentioned in the report for the first time.
However, he believes the report highlights a concerning trend: an over-reliance on short-term performance tactics.
“This 'efficiency tax' is a wake-up call for Australian businesses. While operational efficiency is important, it shouldn't come at the expense of building strong, desire-driven brands that can drive exponential growth across multiple arenas,” he said.
“Brands are moving from 'finding customers for your competencies' to 'building competencies around your customers'. It’s allowing brands to expand beyond traditional category boundaries and tap into new arenas of opportunity.
“Our analysis shows that for every point increase in the combined Role of Brand and Brand Strength, businesses can expect a 2.3x return on their stock price.
“This underscores the critical importance of the brand as a competitive moat and long-term growth driver. Australian brands need to ask themselves that investing in brand is not just about making gloriously creative TV ads and performance marketing; it's about creating sustainable business value.”
Apple holds the top spot
Apple remains the most valuable brand, but its brand value has dropped for the first time in more than two decades.
Interbrand global director of brand economics Greg Silverman said: “While others rushed into AI, Apple took a more deliberate path to ensure its AI releases matched its values”.
“This slower-moving act of leadership has put long-term trust ahead of short-term revenue gains.
“Following these brand moves, Apple’s stock has moved up 20% YTD and we anticipate that Apple’s value will increase in the 2025 rankings.”
Automotive brands dominate 2024
Of this year's top 100 brands 14 are automotive, making up more than any other sector in the ranking.
Three auto brands – Toyota (#6), Mercedes-Benz (#8) and BMW (#10) – appear in the top 10.
However, not all auto brands have achieved such success. Tesla (#12) has one of this year’s largest declines in brand value (-9%). Meanwhile, Kia (#86), Hyundai (#30) and Toyota (#6) achieved double digit growth.
Top-tier luxury shows resilience through innovation
Luxury’s brand value continued an upward trajectory, extending relevance by creating new consumer experiences and expanded digital touchpoints, demonstrating powerful creativity that taps into the human condition.
Ferrari (#62) captured this year’s spot as the top-rising brand, with +21% brand value growth.
Louis Vuitton jumped three places with Hermès and Prada two of the biggest luxury brand risers this year, seeing brand value growth of +15% and +14% respectively.
Meet the new entrants
Nvidia (#36), Pandora (#91), Range Rover (#96), and Jordan (#99) are this year’s new entrants – and Jordan is the first personality brand to make it onto the table. Uber (#78) and LG (#97) re-enter.
Marketing landscape changes over 25 years
Over the past 25 years, Interbrand has observed a significant shift in the ways company boardrooms approach growth.
C-Suites are prioritising lower total investments with more immediate returns. Strategies that integrate long-term brand equity with short-term revenue gains are becoming the gold standard – but these strategies are still surprisingly rare.
Interbrand global CEO Gonzalo Brujó said performance tools, capabilities and systems have evolved over the past quarter century.
“As these tools shift, so do the pressures and expectations placed on brand and marketing leaders. Today, CMOs are expected to deliver greater revenue returns, in shorter time frames, for a lower investment,” he said.
“Many of the world’s most valuable brands are missing out on significant earning potential by over-investing in short-term gains. Our analysis shows these gains, when tied predominantly to short-term tactics, can undermine a company’s mid- to long-term revenue potential.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.