The total value of America’s top 10 logo brands is worth more than 10X the combined value of ten of the most expensive and renown real estate in the world including the Eiffel Tower in France and The Vatican in Rome! For businesses, this data proves that creating a great company logo can hold more value than the Wonders of the World. Logos are the epicenter of a company’s brand; the personality behind the business, and the marketing soul of its endeavors.
Illustrations of the Value of Logos
Logos reign supreme in the monetary and marketing world, diminishing even the most expensive real estate on the planet including; The Forbidden City, China, Winter Palace, Russia and Tokyo Imperial Palace. Ten of the world’s most iconic buildings worth combined only represents 10% of the value that the United State’s top company logos achieve.
Industry Shifts to Technology Companies
Over the last decade, tech brands such as Google and Apple have taken the top spots most valuable logo brands from formidable consumer brands such as Coca-Cola and Marlboro.
In 2006, the top 5 global brands were Microsoft $62 billion, General Electric $55 billion, Coca-Cola $41 billion, China Mobile $39 billion and Marlboro $38 billion.
2012 began the shift away from consumer products to technology when Apple $183 billion moved into the #1 global brand spot along with IBM $116 billion, Google $107 billion, McDonald’s $95 billion with Microsoft $76 billion dropping to fifth place.
The 2017 lineup of global top brands, are all technology companies, leads with #1 Google $245 billion, Apple $234 billion, Microsoft $143 billion, Amazon $139 billion and Facebook $129 billion.
Logo Brand Value Calculation
The monetary value of a company brand is a three-step valuation process.
Step 1 – Financial Value – It begins by determining the percentage of corporate earnings that results from the brand logo. Utilizing that brand amount and then assessing the company’s future earnings by using a brand multiple calculations.
Step 2- Brand Contribution – These three factors are considered:
Step 3 – Brand Value – Multiple the financial value from step 1 by the brand contribution in step 2 results in the Brand Value amount.
Brand value calculations for companies include the future ability to earn more money. While real estate, regardless of its historic and cultural value, is limited by its stationary location, the comparative market value of neighboring properties. Growth is typically under 10% annually, US housing prices rose 6.21% in 2017.
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