Interbrand’s annual survey of the top brands in the world always creates some interesting discussion around how best to define brands and their value. By a proprietary (i.e., fuzzy) methodology, they attempt to put a financial value on the brand. Many of the most valuable brands near the top of the list are the ones you’ve come to expect: Coca-Cola, Microsoft, McDonald’s, Disney, etc.
But there is a different cut on the rankings that reveals a profound statement on the current state of brand building. There are only four brands ranked in the top half of the list in 2009 that were not on the list at all five years ago. Based on this rise from nowhere to top 50 in the world, you might characterize these as the companies that did the most brand building in the last five years. These four brands are:
- Google (#7)
- H&M (#21)
- UPS (#31)
- Zara (#50)
As you look at these all-star performers, I’d ask marketers to consider one question: what do you remember about their advertising campaigns over the last five years?
You may remember more than a few things for UPS, and it is fair to say they have been active and heavy advertisers in the past few years. But it is quite a different story for the others. Google sells ads instead of buying them. For Spain-based retailer Zara, it is a bit of a trick question because they pride themselves on their “zero advertising” business plan. They built their business on “fast fashion” by which they can design, manufacture, and ship to a new product to shelf in less than three weeks. H&M is also a fast fashion brand, that does some promotional product advertising, but attracts most of its ardent followers from a never-ending cascade of new fashions that promises a whole new store every month.
We hear lots of stories of smaller brands that have used innovative marketing approaches to build a successful niche or score a quick hit. These companies tell an even more powerful story of becoming among the most valuable brands in the world while using few of the techniques we’ve come to associate with megabrands.
So as some ponder the question about what kind of advertising they should be doing — broadcast, online, mobile? — they might also ponder the question if they should do any advertising at all. To be realistic, advertising is and always will be a powerful tool. But it is no clearly no longer the default tool for becoming a major consumer brand.
As the world flocks to social media, it is important to remember that not every tool is right for every situation. On a tactical basis, Twitter is an excellent example of this. Just as nearly every marketer who wanted to look plugged-in 18 months ago was starting a blog, the same crew is now crushing on Twitter. Lost in this rush to appear like a modern marketer is even a cursory examination of what the tool is designed to do. As its heart, Twitter is an announcement vehicle disquised as a conversational vehicle. It is ideal for passing along news, gossip, and funny quips. It is a mediocre vehicle for dialogue. Yet, I have heard many a marketer justify their Twitter efforts as a way to have a deeper conversation with their customers.
The Ryan Report 