Apple Surpasses Google In Brand Valuation

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Apple became the most valuable brand in 2010 -- surpassing Google, according to the sixth annual BrandZ Top 100 Most Valuable Global Brands study published by Millward Brown, a WPP Group company.

Four of the top five ranking leaders are in technology. Apple increased in value by 84% to $153.3 billion. Apple's rise came as the value of the BrandZ Top 100 Most Valuable Global Brands appreciated by 17% to $2.4 trillion, driven by year-on-year growth in all 13 product sectors studied.

Google took second place at $111 billion, dropping 2% compared with last year. The search giant may have lost the No. 1 valuation spot, but it is still the most desirable technology brand (134).

Aside from valuation, brands need quality products. Consumers build relationships with brands based on trust and recommendations. Along with Microsoft, Google also tops the list when it comes to Trust (119) and Recommendation (115). Baidu also led in trust (127). These rankings are based on how companies are trusted and recommended.

Along with Apple and Google, Facebook, Amazon, Bing and Baidu also came in as top performers. At No. 35, Facebook made the BrandZ Top 100 for the first time, with a 246% uptick in brand value to $19.1 billion. Microsoft -- which owns the Bing brand -- ranked No. 5, with an estimated brand value of $78 billion, up 2% compared with the prior year. Chinese search engine Baidu showed a dramatic increase. Its brand value climbed 141%, ranking No. 29 with its $22.6 billion valuation.

Technology not only empowers brands, but consumers as well. The report notes that "transparency" might have become a buzzword last year, but that's because the subject spans topics from pricing to problems. In other words: "To err is human. To cover up is unforgivable, especially in a transparent, socially-networked world."

While all sectors grew in brand value, technology companies experienced 18% year-on-year growth, compared with 32% during the past three years.

While the report highlights the rise of technology brands, equally important is the impact of technology on brands. Last year, brands reached more potential and existing customers on company and retail Web sites, as well as on Google, Bing and Yahoo and mobile applications to reward shoppers for their interaction.

More brands last year also collaborated and co-created. For example, by the end of 2010, around 18 million consumers owned iPads or other tablets, according to the report. Apple understood; it trusted that companies and consumers would discover myriad uses for the iPad and iPhone. This co-creation approach resulted in roughly 350,000 Apple apps that added value to the products and the brand.

Similarly, co-creation helped brands improve products and marketing based on comments from customers in conversations on social networking sites. Co-creation also was the basis of collective shopping sites, such as Groupon. And digital helped some strangers become friends.

The rankings are based on how much the brand name contributes to earnings, along with what consumers' perceptions of the brand are and how much they are expected to grow.

 

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