Last month we talked a lot about small business branding, and how creating a strong brand can add a great deal of value to your business in the long run. But what do we mean when we talk about “brand value”?

Brand value is a term that comes up a lot for companies with shareholders, because positive brand value can do a lot to convince people to invest in a business. It also comes up when talking about the buying and selling of companies when determining an appropriate price.

Consider Instagram, a startup that sold to Facebook in 2012 for 1 billion dollars,  despite the fact that it is a service that exists on the internet and was run by just a few people. Sure, Facebook was buying the app’s technology, but Facebook has an army of developers that could easily have built similar photo sharing apps in a few days. So why the $1 billion price tag? Facebook was buying the brand that Instagram had spent two years building — very, very well.

Simply put, if all of a hypothetical company’s assets put together are worth $1 million, and it is purchased for $10 million, then you could say that the company’s brand is worth $9 million. With that in mind, have a look at the brand values of the top 5 most influential brands in the infographic below, created by Infographdesign.com (via Infographic Journal).

So if you are on the fence about whether or not it’s worth your time to invest in brand building for your small business, consider the numbers below. They are not the net worth of companies like Coca-Cola and Apple, they’re the value of the brand alone.

About the Author: Sarah Matista is the Online Content Specialist and resident blogger at Webs. Loves branding, marketing, whales. Get more from Sarah on Webs’ Blog and Google+.

4 Responses

  1. Reply
    Dorothy Gonzalez
    Jul 19, 2013 - 06:39 PM

    I am not completely a brand conscious person but I must admit that most of the time I would go for a trusted brand than to take a risk with a never-heard one.

  2. Reply
    Johnson
    Jul 23, 2013 - 11:00 AM

    Brand names truly create a huge difference. Usually long names for brands does not make hit.

  3. Reply
    Celsa
    Aug 07, 2013 - 03:05 PM

    I couldn’t refrain from commenting. Perfectly written!

  4. Reply
    Lillie
    Aug 08, 2013 - 10:01 AM

    Very good info. Lucky me I ran across your website by chance (stumbleupon).
    I have book-marked it for later!

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