MTN, Africa’s most valuable brand, still can’t make it into the Brand Finance Global 500, which puts 5,000 of the biggest brands to the test and publishes nearly 100 reports, ranking brands across all industries and country.
The 500 most valuable and strongest brands in the world feature in the annual Brand Finance Global 500 ranking, now in its 16th edition.
According to brand valuation consultancy Brand Finance, brand equity is understood as the net economic benefit that a brand owner would obtain by licensing the brand in the open market. He notes that brand strength is the effectiveness of a brand’s performance on intangible measures relative to its competitors.
The consultancy released its Brand Finance Global 500 2022 report yesterday, which shows that African brands are still outside the rankings.
According to the report: “There are still no African brands in the Brand Finance Global 500 2022 rankings as global brands continue to dominate the continent.
He notes that MTN is Africa’s most valuable brand with $4 billion – just over $600 million below the threshold of the top 500 ranking this year.
MTN, headquartered in Johannesburg, is Africa’s largest mobile operator. As of December 2020, MTN had 280 million subscribers, making it the eighth largest mobile network operator in the world and the largest in Africa.
Present in more than 20 countries, the company generates a third of its turnover in Nigeria, where it holds around 35% of the market share.
“It is estimated that Africa will soon be home to a quarter of the world’s population, making it a lucrative destination for global multinational brands,” comments Jeremy Sampson, Managing Director of Brand Finance Africa.
“In this context, no African brand is in the ranking of the 500 most valuable in the world, because many local brands have been abandoned by global giants. However, South African telecom giant MTN is currently performing very well and is well positioned for the future. We could therefore expect him to be closer to his inclusion in the rankings next year.
Meanwhile, tripling the brand’s value over the past year, TikTok has been named the world’s fastest growing brand.
Brand Finance notes that with an astonishing 215% growth, the entertainment app’s brand value has grown from $18.7 billion in 2021 to $59 billion this year. Claiming 18th place among the world’s 500 most valuable brands, TikTok is the highest new entrant in the Brand Finance Global 500 2022 ranking.
David Haigh, Chairman and CEO of Brand Finance, said: “Media consumption has increased throughout the COVID-19 pandemic, but – what’s more – the way we consume it has irrevocably changed.
“In order to compete in this evolving market, media organizations have invested heavily in their brands, from content acquisition to user experience. TikTok’s meteoric growth is proof of this: the brand has gone from relative obscurity to international fame in just a few years and shows no signs of slowing down.
Overall, Brand Finance says media brands are the top three fastest growing brands in the rankings – with fellow social media app Snapchat (brand value up 184% to $6.6 billion billion) and South Korean internet brand Kakao (up 161% to $4.7 billion) following closely behind TikTok.
Other notable players in the media sector include those offering streaming services, with Disney (up 11% to $57 billion), Netflix (up 18% to $29.4 billion), YouTube (up 38% to $23.9 billion) and Spotify (up 13% to $6.3 billion) all saw increases.
The consultancy points out that Apple retains the top spot with a record valuation of $355.1 billion – the highest brand value ever in the Brand Finance Global 500 ranking.
According to the firm, Apple had a bumper 2021, highlighted by its achievement in early 2022 – being the first company to reach a market valuation of $3 trillion.
This explains that the tech giant’s success historically relied on honing its core brand positioning, but its more recent growth can be attributed to its recognition that its brand can be effectively applied to a much wider range of services.
“Apple enjoys an incredible level of brand loyalty, thanks in large part to its reputation for quality and innovation,” says Haigh.
“Decades of hard work to perfect the brand have seen Apple become a cultural phenomenon, allowing it to not only compete, but also thrive in a host of markets. With many rumors about its foray into electric vehicles and virtual reality, it looks like it’s ready for a new leap.
Brand Finance points out that Amazon and Google also recorded good levels of growth, both retaining their places in the Brand Finance Global 500 rankings behind Apple, second and third respectively.
He adds that Amazon joined Apple in crossing the $300 billion mark in brand value with a 38% increase to $350.3 billion, navigating global supply chain issues and a shortage of labor in the process.
Google saw similar brand value growth of 38% to $263.4 billion, the company says, noting that the brand depends on advertising for the vast majority of its revenue, and was hit early in the year. the pandemic, as advertising spending plummeted due to the uncertainty.
However, he explains, as the world adjusts to the new normal and people spend more and more time online, advertising budgets have returned and Google’s business has rebounded, which led to a healthy increase in brand equity.
The technology sector is once again the most valuable in the Brand Finance Global 500 ranking, with a cumulative brand value of nearly $1.3 trillion.
Technology and tech brands have become increasingly important in the modern world, a trend that has been exacerbated by the COVID-19 pandemic, says Brand Finance.
A total of 50 tech brands feature in the ranking; however, the brand value is largely attributable to three major players, with Apple, Microsoft (brand value $184.2 billion) and Samsung Group (brand value $107.3 billion) together accounting for more 50% of the total brand value in the sector.
Right behind them, Huawei managed to reclaim its place among the world’s 10 most valuable brands, after growing 29% to $71.2 billion.