4 Brand Valuation Methods

Value has different meanings to different people. The objective of the valuation is determined by its use. Some of the more common valuation approaches are market based/direct measurement method; brand communication investments based method; awareness and franchise valuation method; finance based/indirect measu- rement method; excess-earnings method and relief-from-royalty method.

The simplest direct measurement is to add all the brand’s communication investments, adjusted for inflation. An additional adjust- ment is sometimes made to account for and reward the risk taken by past managers. This adjustment is called the discount rate and it is used to compute the net present value of the successive investments, that is, what they are worth today. The method is simplistic and overvalues the brands; but brand buyers use it for that very reason. It also penalises brands that do not advertise heavily.
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Cornerstones of branding strategy

Tampa Bay Business Journal has an interesting article on branding putting up a list of five cornerstones of a brand strategy.

It’s time to get moving, step up to the plate and get your business ready to rock and roll in this new year. Your branding can simply make your business forgettable or unforgettable

Great brands can be worth their weight in gold. Just as ineffective names can make you just another noodle in the bowl of soup.

  • Determine your organization’s Unique Selling Advantages.
  • Research and solidify your customers’ Unique Buying Advantages.
  • Craft your Big Idea to get attention.
  • Hold everyone accountable through Integration.
  • Marketing Integration is essential

Read full Your brand belongs on the asset list article

Make Brand Advertising Work Online, the Yahoo! Way

Considering the latest Forrester Research study about online advertising the future is bright for the 21st century’s media giants, like Yahoo! or Google, and here are some excerpts from this study:

  • 2005 growth in online advertising spending, represents a 23 percent increase from 2004, up to $14.7 billion and it’s estimated to $26 billion by 2010
  • This is not the return of “The Bubble”. The growth is coming from marketers having to make tough decisions about allocating scarce advertising dollars – in many cases, funding online channels from traditional channels. Back in 1999/2000, spending often came from exuberant spending, fueled by venture money.
  • It’s more than just about search. Search is great, it’s growing, but it’s not the whole story. In fact, I anticipate that search will become much more integrated into traditional brand advertising
  • Marketers will shift channels away from traditional channels to fund online marketing

With all these in mind, Fortune Magazine, published and interesting article on Yahoo’s Brilliant Solution, an in-depth analysis on Yahoo’s approach towards winning more and more of the online branding advertising dollars.

And in the scrum for online brand advertising—almost as large a market—Yahoo is poised to grab the biggest share. Its 181 million active registered users are probably the largest online clientele, which means Yahoo can tell advertisers it knows the habits of more users than any other portal—or any traditional media company.