Study Finds Value Of 'Brand Equity' Eroding, More So Among Agencies Than Marketers

Even as the nation's largest consumer brand marketers meet for their annual conference in Orlando, Florida this week, a new report from MediaPost's Research Intelligencer finds that the role of brand equity is eroding.

The report, which is based on interviews of advertiser and agency executives conducted by Advertiser Perceptions in September, found that more than a third (35%) believe the role of brand equity is becoming less valuable, while only about a quarter (26%) believe it is growing in importance.

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Importantly, there also appears to be a disconnect between advertisers and their agency counterparts, with a greater percentage of clients perceiving the role of brand equity becoming more valuable, vs. ad agency executives who see it becoming less valuable (see below).

The report also reveals the major reasons why ad executives believe why the value of brand equity has been eroding (hint, it's seen mostly as a "generational shift"), as well as possible solutions for dealing with it.

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