TikTok has tripled in brand value over the past year to be named the world’s fastest growing brand, according to Brand Finance.
The entertainment app’s brand value increased 215% to US$59.0 billion this year from US$18.7 billion in 2021.
TikTok claimed 18th spot among the world’s top 500 most valuable brands and is the highest new entrant to the BrandFinance Global 500 2022 ranking.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries.
With COVID-19 restrictions still in effect across the globe throughout 2021, digital entertainment, social media, and streaming services saw continued growth, and TikTok’s rise is testament to how media consumption is changing.
With its offering of easily digestible and entertaining content, the app’s popularity spread across the globe, however, it also acted as a creative outlet and provided a way for people to connect during lockdown.
At the same time, strategic partnerships, such as its sponsorship of the UEFA Euro 2020 tournament, exposed TikTok to demographics outside of its original Gen Z base.
It crossed the one billion user mark in 2021 and became the most downloaded app across Android’s Google Play store and Apple’s App Store.
David Haigh, Chairman & CEO of Brand Finance: “Media consumption has increased throughout the COVID-19 pandemic, but – what is more – the way we consume it has irrevocably changed. In order to compete in this evolving marketplace, media organisations have invested heavily in their brands – from content acquisition through to user experience.
"TikTok’s meteoric growth is the proof in the pudding – the brand has gone from relative obscurity to internationally renowned in just a few years and shows no signs of slowing down.”
Apple has retained the title of the world’s most valuable brand following a 35% increase to US$355.1 billion – the highest brand value ever recorded in the Brand Finance Global 500 ranking.
Apple had a stellar 2021, highlighted by its achievement at the start of 2022 – being the first company to reach a US$3 trillion market valuation.
The tech giant’s success historically lied in honing its core brand positioning, but its more recent growth can be attributed to the company’s recognition that its brand can be applied effectively to a much broader range of services.
The iPhone still accounts for around half of the brand’s sales. However, this year saw Apple give more attention to its other suite of products with a new generation of iPads, an overhaul to the iMac, and introduction of AirTags. Its range of services, from Apple Pay to Apple TV, has also gone from strength to strength and become of increasing importance to the brand’s success.
Additionally, Apple knows the importance of being in tune with its customers for maintaining brand equity. Privacy and the environment are salient topics, and Apple bolstered its credentials on both fronts.
This is evidenced by a greater transparency of the App Store’s privacy policy, reinforcing the trust customers have in the brand, and the announcement that more of Apple’s manufacturing partners will be moving to 100% renewable energy, as the company aims to reach carbon neutrality by 2030.
David Haigh: “Apple commands an amazing level of brand loyalty, largely thanks to its reputation for quality and innovation.
Decades of hard work put into perfecting the brand have seen Apple become a cultural phenomenon, which allows it to not only compete, but thrive in a huge number of markets. With rumours abounding of its foray into electric vehicles and virtual reality, it seems it is ready for a new leap.”
Amazon and Google also saw good levels of growth, both keeping their spots in the Brand Finance Global 500 ranking behind Apple in 2nd and 3rd respectively. Amazon joined Apple in crossing the US$300 billion brand value mark with a 38% increase to US$350.3 billion, navigating global supply chain issues and a labour shortage in the process.
Google saw a similar brand value growth of 38% to US$263.4 billion. The brand relies on advertising for the vast majority of its revenue, and was hurt at the start of the pandemic as advertising spend dropped due to uncertainty.
However, as the world adjusted to the new normal, and with people spending more and more time online, advertising budgets opened back up and Google’s business rebounded, resulting in a healthy uplift in brand value.
WeChat remains the world’s strongest brand, retaining the title for the second consecutive year, with a Brand Strength Index (BSI) score of 93.3 out of 100 and a corresponding AAA+ rating.
WeChat plays an integral part in day-to-day life in China, with its all-encompassing set of services allowing customers to message, video call, order food, and shop. It also played an integral part in the country’s fight against COVID-19, with more than 700 million people using its services to book vaccinations and tests. The app’s entrenchment in people’s lives helps it achieve strong scores in reputation and consideration among Chinese consumers, according to Brand Finance’s research.
In line with the trend seen in the brand value ranking, four out of the top 5 strongest brands now come from the media sector, compared to only two before the start of the COVID-19 pandemic.
Joining WeChat at the top of the ranking is Google, climbing from 39th to 3rd with an impressive BSI score of 93.3, followed closely by its Alphabet stablemate YouTube, which rose from 27th to 4th with a BSI score of 93.2. South Korean brand Naver rounds off the media brands in the top 5, jumping a remarkable 99 places to 5th with a BSI score 92.5.
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