Why spend on a brand if you don’t get credit for it?

By applying the MASB Brand Investment & Valuation model, finance teams can more easily tie changes in brand strength to changes in a financial metric, i.e. brand value. This brand valuation can be tracked over time.

Marketing Spending vs Brand ValuationAs an example, this model has been used within one company to illustrate the relationship between long-term marketing spending for eight of their brands and the corresponding calculated brand valuations.

In this chart, the bars represent the marketing spend placed behind the brand while the gold symbols represent the calculated brand valuation. A strong correlation between the two is clear. What once was taken only on faith is now visibly demonstrated.

Note that in the case of the seventh brand, uncertainty of sustainability resulted in assigning no brand value.

The implementation of the brand valuation process itself can pay large dividends. READ MORE…

The complete white paper, Applying the MASB Brand Investment & Valuation Model , is available to MASB members. Visit MASB White Papers.

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