Facebook has lost its spot among world’s top-ten most valuable global brands for the first time in four years after enduring a year marred by privacy scandals, a multibillion dollar fine from US regulators, and investigations over how it uses consumers’ personal data.
The social networking giant dropped some five places to settle at number 14 this year in Interbrand 2019 Best Global Brands – which is dominated by tech companies – following a 11.8 percent decline in its brand value to $39.85 billion since last year. However, Apple, Google and Amazon retained the first three places.
Facebook first entered the Interbrand Best Global Brands report in 2012 at number 69, peaked at eighth place in 2017 with a brand value of $48.18 billion, and tagged as a “rapidly appreciating” brand.
The Omnicom Group-owned brand consultancy measures brand valuation on the financial performance of branded products and services; the role the brand plays in a consumer’s purchase decisions; and the brand’s competitive strength and ability to create loyalty. While a company’s market value was taken into account, it is not same as its brand value.
Apple topped the top 100 best brands’ list with a brand value of $234.21 billion, followed by Google and Amazon whose brands worth $167.71 billion and $125.26 billion, respectively. Microsoft ($108.84) was the fourth, Coca Cola ($63.36) fifth and Samsung ($61.09) came sixth on the list.
The seventh spot was occupied by Toyota ($56.24), Mercedes-benz ($50.83) was the eighth, McDonald’s ($45.36) ninth and Disney ($44.35) was at the 10th spot. Coca-Cola, Microsoft and IBM gapped the top three spots of the ranking in 2000 when the list was first published. The ranking is now in its 20th year.
Although Facebook is not the only big tech company that’s being investigated for anticompetitive behaviour, Google, Amazon and Apple are being scrutinised too. But it appears the consumer reputation of the social media platform has been negatively impacting the firm more than others.
“For decades, the entire discipline of brand-building was based on the concept of brand positioning, but in today’s accelerating markets, customer expectations outstrip static brand positions,” said Charles Trevail, global chief executive of Interbrand. “Brands can no longer be considered separate to businesses and will be judged on what they do, not just what they say; and about trust, not just delivery.”
Professional social networking site, LinkedIn, and ride-hailing company Uber were the first-time entrants into the top 100 brands at 98 and 87 respectively, while Johnnie Walker, Sprite and Subaru exited the Interbrand Best Global Brands 2019 ranking.
Mastercard was the leading growth brand have recorded the fastest pace of growth. The company moved eight places to number 62 on the back of a quarter increase in brand value to $9.43 billion, while other top performers include Gucci (23 percent) and Adobe (20 percent).
