Thu - September 30, 2004

Ups and downs


Gaining and losing brand value – continued – Brandient launches brand valuation

Ok, here is the continuation of the previous post on brand value (I can speak now because it is public) – Brandient just completed the first pilot project of brand valuation on the Romanian market. The project took 3 months and its subject was the top Romanian business magazine Capital, whose brand was valued at 5.4 Mio. EUR. You will find the article on Capital's web site here (sorry, Romanian language only).

Brandient spent 2 years in developing the complex model, based on widely accepted financial techniques and employing local knowldege and specialists, so brand valuation is no longer guesstimation work, poker bluffing or voodoo.

This is good news for the business community, as (hopefully) we'll see mergers and acquisitions taking place at an increasing rate and the brand value itself will eventually get more important in some cases than the value of tangible assets (or the other intangibles).

This is bad news for the capitalists who think they have a brand and they may find they only have a trademark, despite spending money on adverts. And even worse news for the ad agencies which are driving the value of their clients' brands right into the ground, as this tool is capable of x-raying the process and see if the brand communication budget was invested in the brand value or it was flushed down the toilet.

300th post!

Posted Thu - September 30, 2004 at 12:36 AM
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