October 18, 2019
In Interbrand’s latest Best Global Brands report, Facebook fell out of the top ten, dropping to 14th due to an estimated declined value of 12 percent. Amazon moved up to 3rd and The Walt Disney Company moved up to 10th. Apple remains in the top spot, with Google right behind. Previously, Facebook had grown in value each year of its existence up until 2017, when it came in 8th place on the list. But with incidents like the Cambridge Analytica scandal on its heels, the company’s value has dipped.
The Interbrand report “synthesizes elements including the financial performance of branded products or services, the role that brands play in purchasing decisions and brands’ ability to create loyalty,” according to The Wall Street Journal.
Besides the Cambridge Analytica scandal, Facebook (along with other tech giants) “are subjects of antitrust investigations and calls by prominent presidential candidate Senator Elizabeth Warren to break them up,” reports WSJ.
“The lack of trust in a brand, if it goes to the heart of its business model, is really going to affect a brand,” said Charles Trevail, global chief executive at Interbrand.
The Interbrand report also highlights Facebook’s declining relevance and the rise of competition, both of which play into its drop out of the top 10. While Amazon remained in 3rd, not moving up or down since last year’s report, its brand value has risen the quickest of all, “by 24 percent to $125.3 billion,” according to WSJ.
“The companies that are doing well are the ones that are making big bets,” said Trevail when talking about Disney’s jump to 10th, from 14th. The entertainment giant’s 11 percent increase in brand value to $44.4 billion is likely due, in part, to the company’s upcoming streaming video service.
Microsoft remained in the 4th spot, and Interbrand indicated its brand value rose “17 percent to $108.8 billion to remain at No. 4.” According to Jeff Hansen, general manager of brand strategy at Microsoft Corp., the report is valuable in some respects.
“It is an outside-in view of how this community, this portion of the marketplace is looking at us … The exact valuation they come up with is not something I really focus on. I do think how much are we increasing or decreasing in a given year against many others is interesting,” he said.