Tech dominates Top 100 Most Valuable Brands Ranking
After several years of snatching the prize from each other, Google has managed to fight off Apple to defend its position as the world’s most valuable brand in Kantar Millward Brown’s 2017 BrandZ ranking.
The internet giant has extended its lead after achieving a 7% increase to $246bn, compared to Apple’s 3% rise to $235bn, meaning there is now a 4.4% value difference between to two global leaders. Last year it was far closer at 0.3%.
Microsoft (third) and Facebook (fifth) have also managed to retain their positions in the top five, with the former increasing brand value by 18% to $143bn and Facebook seeing a 27% boost to create a brand value of $130bn. The annual BrandZ ranking, which is compiled by WPP consultancy Kantar Millward Brown, is based on a combination of millions of consumer interviews and each company’s financial performance.
It is Amazon, however – last year’s fastest riser after increasing brand value by 59% – that continues to see some of the strongest growth. It is again one of top risers after seeing a 41% increase in brand value, meaning it enters the top five for the first time, in fourth place.
Dubbed the "Frightful Five" by David Roth, CEO EMEA and Asia, The Store WPP, he added that tech's giants now enjoy a seemingly unassailable position, brought about by their huge brand power.
Aside from the US' biggest players, China's Tencent – owner of messaging app sensation WeChat – entered the top 10 for the first time with 27% growth, suggesting that the key trends are now global rather than local.
Looking at brand value by location, the US is by far the biggest, representing 72% of the top 100 brands by value. This is up from 69% last year. The collective brand value of brands from Europe (10%), the UK (2%) and Asia (15%) have all dropped by one percentage point since 2016.
The US represents 56% of the brands included in the ranking, up from 51% in 2016, thanks to the inclusion this year of all seven newcomers. These include telecoms provider Xfinity (23), YouTube (65), HPE (76) a company formed after the split of HP, Salesforce (90), Netflix (92), Snapchat (93) and telecoms business Sprint (96).
Swiss brands are absent from Top 100. Rolex worths $8 billion (+ 1%), Nescafé $6.3 billion (+ 3%), UBS $6.1 billion (-12%) and Nespresso $5.9 billion (+ 5%).
“If you look at all the new brands that come in this year, they are all tech brands of one sort or another,” says Peter Walsh, BrandZ global strategy director. “Silicon Valley is making funding easy so route to market is even easier with brand America behind it. If you look at the average age of those brands, they’re less than 20 years old.”
This year, the total brand value of the Top 100 brands has risen +8% to $3.64 trillion, compared with +3% in 2016, while the number of brands worth more than $100bn has increased from six to nine. The total brand value of the ranking is up +152% from 2006 (its first year), as its composition has shifted towards innovative, consumer-focused technology brands with huge reach and brand-building power. The BrandZ Top 10 in 2017 are worth almost as much as the entire Top 100 in 2006 ($1.42tn vs $1.44tn), and have grown +249% in value, compared with +152% for the Top 100 as a whole.
Rank Brand value Brand value Rank
2017 Brand Category 2017 ($M) change 2016
1 Google Technology 245,581 +7% 1
2 Apple Technology 234,671 +3% 2
3 Microsoft Technology 143,222 +18% 3
4 Amazon Retail 139,286 +41% 7
5 Facebook Technology 129,800 +27% 5
6 AT&T Telecom providers 115,112 +7% 4
7 Visa Payments 110,999 +10% 6
8 Tencent Technology 108,292 +27% 11
9 IBM Technology 102,088 +18% 10
10 McDonald's Fast food 97,723 +10% 9