During its recent Summer Summit at DePaul University, the Marketing Accountability Standards Board (MASB) awarded Brand Finance with Marketing Metric Certification for its Brand Valuation League Tables, which passed the rigors of the Marketing Metric Audit Protocol (MMAP), the formal process for validating the relationship between marketing measurement and financial performance. This second re-certification for Brand Finance has been added to the MMAP Metric Catalog.
Receiving the award, Laurence Newell, Managing Director, Americas, described how Brand Finance has evolved as a company. “The underlying conversation today had to do with being flexible, adapting, going back to basics, an approach where less is more. We’re focused on measuring what really matters at the end of the day as brand managers. We’re also really measuring what helps us understand impacts from a financial point of view. We’re eliminating what’s excessive and eliminating what really wasn’t providing a clear-cut, hard-wired path to financial outcomes.”
“MASB applauds Brand Finance’s continued commitment to advancing the state of the art in brand valuation methodology,” said MASB Executive Director Frank Findley. “The recent changes further bridge the gap between marketing metrics and financial metrics. This has clarified the relationship between brand and share price.”
Brand Valuation League Tables are a global study of brand strength and value across over 45 sectors, based on a transparent methodology and using publicly available data. The valuation methodology used is the Relief from Royalty method, which models the expected royalties a business would have to pay to license the brand(s) it uses. These brand royalties are forecast and discounted to give a net present value of the brand. Brand Finance calculates over 5,000 brand values and brand strength ratings each year, tracking (not predicting) the movements, trends, and responses to events.
Based on 10 Characteristics of an Ideal Metric, the MMAP assessment provides vendors and users of marketing performance metrics with a systematic way of thinking about specific metrics with criteria for assessing their usefulness, their relationships with one another, and their relationships to measures of financial performance. For more information, contact info@themasb.org.