Apple has reclaimed a long-running title as the world's most valuable brand after Google's stint in the top spot briefly disrupted its reign last year, according to the annual BrandZ ranking compiled by marketing research firm Millward Brown.
Before the search giant ousted it last year, Apple had enjoyed a three-year run at the top of the ranking, which Millward calculates by using market data and millions of consumer surveys to suss out the portion of a company's value that can be attributed to its brand.
This year, Apple's brand surged 67% in value to a staggering $247 billion, compared to Google's 9% jump to $174 billion, propelling the former past the latter by a commanding lead.
A look back at each company's track record over the past year may provide some indication why. Apple released a hugely hyped smart watch and boasted strong iPhone sales that drove the company to routinely beat earnings expectations. Meanwhile, Google's scrapping of its Glass headset, overseas regulatory troubles and lackluster earnings may have dented its brand appeal.
With Microsoft and IBM following at Google's heels, tech giants dominate the top ten list, and the study suggests their influence will only continue to grow. At a value of more than $1 trillion, the tech sector makes up a third of the value of the top 100, and it's seen a 24% uptick in value over the past year.
Chinese Internet giant Tencent, Facebook, Alibaba and Amazon were among the tech and e-commerce companies that fell just short of the top ten.
Nigel Hollis, chief global analyst at Millward, said convenience is the number-one driving power of brands. People want a product that will make their life easier in a meaningful way and one that sets itself apart from competition. That arena is where tech companies excel, he says.
"[The top brands] really meet their needs and come across in a way that people really appreciate, that they love," Hollis said.
"It's so difficult for brands to find ways to differentiate themselves and that's where technology can offer a significant advantage."
Perhaps that's why Amazon and Alibaba, two online-only marketplaces, have grabbed up the top two top spots for the retail industry.
Some of the top-ranked also serve as a reminder that despite talk of some legacy corporations struggling to stay ahead of changing audience tastes, these companies are still dominating global forces as a whole.
McDonald's, for instance, occupied the number 9 spot despite a 5% slide in its brand value. While the fast food empire is revamping its brand in a struggle to woo younger audiences in the United States, it remains the reigning fast food powerhouse with a strong presence overseas.
With smoking rates in the U.S. reaching all-time lows, Marlboro might not be your first guess for a top 10 brand, but across the world, the number of tobacco smokers remains high. The cigarette purveyor saw a 19% boost in the past year to a value of 80 billion.
"Marlboro is the biggest, the most salient of the tobacco brands and, for many people, the most meaningful and different," Hollis said.
Facebook, which clocked in at number twelve, was the fastest-growing brand with 99% leap in value. Hollis attributes the social network's rise to its user experience and its savvy acquisitions.
"If you look back in time, people we're going, 'Oh they're never going to make it,' but they've made a fantastic transition to mobile," Hollis said. "Compare that to Twitter, a brand that has not quite had the success that people expected."
See the full top ten list below:
1. Apple
Brand value: $247 billionLast year's value: $148 billion
Change from last year: 67%
2. Google
Brand value: $173 billionLast year's value: $158 billion
Change from last year: 9%
3. Microsoft
Brand value: $116 billionLast year's value: $90 billion
Change from last year: 28%
4. IBM
Brand value: $94 billionLast year's value: $108 billion
Change from last year: -13%
5. Visa
Brand value: $92 billionLast year's value: $79 billion
Change from last year: 16%
6. AT&T
Brand value: $89 billionLast year's value: $78 billion
Change from last year: 15%
7. Verizon
Brand value: $86 billionLast year's value: $63 billion
Change from last year: 36%
8. Coca-Cola
Brand value: $84 billionLast year's value: $81 billion
Change from last year: 4%
9. McDonald's
Brand value: $81 billionLast year's value: $86 billion
Change from last year: -5%
10. Marlboro
Brand value: $80 billionLast year's value: $67 billion
Change from last year: 19%
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Published by Patrick Kulp
