Thoughts about brand valuation.
Some transactions point to the impressive equity that
brands can build. But they also raise the question of
how those brand values were arrived at by the bidders.
How does one measure the value of a brand? How do you
know if you are getting a good deal or a bad one? There
are many answers to those questions but none that is
fully satisfactory.
How do you put a dollar amount on values and
commitment? You can't! For that reason, determining the
value of a brand is usually a combination of direct and
indirect processes. A direct measurement process is one
that arrives at a price based on the communication
investment made behind the brand. An indirect
measurement will value the brand based on what it can
add to the bottom line. |