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Global 2015: 10 YEAR RESULTS | 4. BRANDING PRECEDES ADVERTISING

Perfect the proposition, then communicate it


Two things are critical for building and sustaining valuable brands: a clear, resonant brand idea or proposition, and compelling advertising. In combination, the two components drive Brand Value exponentially.

The brands that consumers say have a strong brand proposition and excellent advertising grew 168 percent in Brand Value over the past 10 years. But strong brand proposition comes first. Brands with a strong brand proposition but lacked excellent advertising grew just 76 percent over 10 years.

And the other way around, brands
with strong advertising but not much
of a brand-proposition story to tell appreciated only 27 percent in Brand Value. Brands that consumers said performed poorly both in brand proposition and advertising grew only 21 percent in 10 years.

A clear and well-communicated brand proposition drives brand value. Deficiency can be costly, since each percentage point of brand value increase – or decrease – represents billions of dollars. 

Brand strength drives value

The brands that consumers say have a strong brand proposition and excellent advertising grew 168 percent in Brand Value over the past 10 years. 



BRAND IMPLICATIONS

Focusing first on creating a meaningful and compelling brand proposition, and then a Big Idea for Communication and advertising it, is the most efficient and effective way to build brand value and receive the greatest effectiveness and return on marketing investment. How to ensure a brand’s proposition remains to be Meaningful to the consumers and how to execute the proposition throughout the organization to deliver consistent brand experience are the key challenges for many brands.