Market Powerful SuperBrand Portfolio
The strength and power of the Global Digital SuperBrand Portfolio provides the opportunity to extend relentlessly into new digital sectors and geographies - organically growing in market relevance, consumer influence and scalable value. With instinctual simplicity, Global Digital SuperBrands that include; Global Digital, Mobile Digital, Data Digital and Local Digital are immediately understood naturally resonating with exceptional market power. The Market Powerful Global Digital SuperBrand Brand Family Is Globally Inclusive, and, Immediately Recognizable & Understood Across Markets, Boundaries, Cultures & Languages. The portfolio embraces both diversity and inclusion which is vital to effectively engage across borders and interconnect geographical and cultural boundaries.
S&P I.P. - $19.82 Trillion & ounting
IP is the largest component of intangible assets, which in 2018 accounted for $19.82T of the $23.6T S&P market cap. This underscores the significant shift in the global economy from hard, tangible assets to intangible assets. With over $19 trillion, or nearly 85 percent of the value of the S&P 500, being intangible, investment in the development and deployment of IP is changing the global landscape across industries and regions. The introduction in 2018 of ISO 20671 - the new accounting standard in brand evaluation - affords solid reasoning for companies to start adopting new approaches to managing and valuing their brand portfolios in a manner that fully captures financially material value. Such initiatives will accelerate enterprise growth and materialize very welcome unforeseen shareholder value.
Accounting Treatment Of Brands
Accountants have long resisted treating brands, as well as other intangibles, as an asset because of the difficulty of relying on the justifiable “fair value” of a market transaction. Accountants have preferred to expense marketing activities which runs counter to ever-nebulous yet highly relied upon treatment of “goodwill” in the balance sheet which is under increasing scrutiny by shareholders and the markets.
The new ISO 20671 standard (“Brand Evaluation—Principles and Fundamentals,” available at www.iso.org), provides an effective framework for evaluating brands. This allows the contribution of brands and related marketing investments to be evaluated relative to an unbranded benchmark. The vision behind such a straightforward and transparent evaluation process is that it should become part of the movement towards integrated reporting (IR). The result sets-up the opportunity to add $Millions to private firms' balance sheets and $Billions to public firms' balance sheets.
Such reporting has a number of advantages. First, it provides marketing and finance with a common focus. Second, treating the brand as a financial asset plays an important role in corporate asset valuation. An increase or decrease in brand value would be a matter of dynamic accountability rather than the traditional straight-line depreciation of brands over a limited number of years. Evaluating brand value would also be useful for risk management in guarding against brand and reputation risks. Third, investors would have access to an important piece of financial information that they presently can only guess at. This will help both companies and investors move away from earnings calls. Market caps might better reflect identified business assets. Over time, standards could be developed to make it easier for investors to compare companies. As intangible assets become more and more important, this would be of enormous value for investors distinguishing between leading companies from those not investing in brands as a valuable business assets.
The Necessity Of Change
Changing the long-standing culture differences between finance and marketing relative to brand value is challenging. At the same time, the forces compelling change can’t be ignored. Brands will only increase in their importance for competitive advantage.
The Value Of Native Digital Brands
Much has changed since the first .Com URL - Symbolics.Com - was registered on March 15th, 1985. Over the past 35 years $Trillions have been invested in global advertising with increasing prioritization by individuals, groups and corporations in owning premium .Com domain addresses as part of a common-sense brand strategy. There is a class of Super Premium .Com native digital brand names that have increased in value and importance becoming integral parts of multi-cultural speech and expression such as GlobalDigital.Com. Equally, other Global Digital SuperBrand Domains such as; MobileDigital.Com, LocalDigital.Com, and DataDigital.Com are also considered in this Super Premium class of native digital brand names. Strong digital brands such as these are valuable assets for any business, driving higher customer acquisition, satisfaction, loyalty, and advocacy, consistently contributing to a given businesses growth and profitability. The launch of ISO 20671 – the new standard on brand evaluation - is having a very positive effect on Premium and Super Premium domain names valuations in much the same way marketing costs are being reconsidered.
Global Digital © 2019
Global Digital Headquarters
1016 AB Amsterdam,
Tel: + 31 20 8945019