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Google scores top brand position
Google's brand is worth an estimated $66.4bn, according to Millward Brown's second annual 'Brandz' ranking. That makes it the world's most valuable brand.
The search engine's brand value surged 77 per cent in the past year, allowing the company to surpass Microsoft and GE for the top spot.
The ranking is based on rather fuzzy mathematics. In additional to quantifiable metrics such as current earnings, it also takes into consideration expected future earnings, and (it gets worse) factors like customer loyalty. Add all those variables, shake well, and Google (with a stock market based $149.2bn market capitalization) is valued higher than Microsoft, despite its $281.8bn market cap, as well as GE's $357.9bn.
Google is a valuable brand and the company will probably be able to expand to numerous online markets. But don't overestimate the stretch and flexibility of its brand.
Google's brand has proven a failure in conquering the online email or messaging markets in a way that resembles its search success. And let's not forget that until the Youtube acquisition, Google Video was left in the shadow of a start-up company.
Next year the study should factor in a firm's track record in expanding to new markets. That will cause Microsoft to plunge into a deep hole (it's still a two-trick pony that relies on Windows and Office), while a firm like Cisco should rank much higher.
April 24, 2007 at 01:40 AM | Permalink
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