Brand value has historically been difficult to quantify, but there is growing recognition that brands should be measured as economic assets and be managed as such. The recognition of acquired goodwill, including brands, has become a firm fixture on the balance sheet. After all, brand value contributes a significant proportion of the valuation of a company and has a direct impact on shareholder value.
In fact, according to Brand Finance’s Global Intangible Tracker for 2006, 62% of the value of the world’s quoted companies is now intangible. Brand equity is now resolutely ensconced on the boardroom agenda and permeates conversations of the corporate finance community. It is widely and assuredly acknowledged as a force to be reckoned with and, more importantly, one to nurture, safeguard, strengthen and develop if a company is to be successful. Our survey found that 39% of those surveyed anticipate that they will experience an increased involvement in the purchasing of marketing services by 2011.
This quote, that appears on the Procurement Leaders Executive Network site, illustrates the more enlightened view that brands bring tangible value to the companies that create, own and manage them. As brand stewards, in-house teams need to articulate their involvement in the nurturing of these brands that are now acknowledged as contributing to the bottom line.