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The BrandMetrics tool was originally developed to measure brand equity. Its creators argued that brands rely on customers for the income flows that create their value. It must be possible therefore to place a value on the brand's equity. Thus Brandmetrics was certainly the first, and is possibly still the only, valuation approach to place the brand monetary value on the customer based income stream.
This methodology, which has now been tested in more than 350 brand valuations, attracted the attention of the TBWA group because it was apparent that a perfect fit was possible between the consumer measurement component of BrandMetrics and the tools offered by TBWA's management consultancy, The Disruption Consultancy (TDC). BrandMetrics identifies the source of value in consumer memory; TDC has the ability to construct original and unique communication approaches to enhance and change positively these vital drivers.
Further, because the BrandMetrics model was constructed on the basis of sound corporate finance principles, the value produced conforms to the guidelines issued by the accounting standard setting boards, for Fair Value measurement.
Developed over a five-year period in a university environment, the BrandMetrics approach is one the world's most fascinating and useful measures of a brand's worth. Based on sound corporate finance principles it will fulfil the above role.
BrandMetrics is now available worldwide through the TDC network or through any TBWA office.
Global praise
“BrandMetrics is a state-of-the-art brand valuation methodology that exquisitely blends financial and marketing concerns to provide solid bottom line numbers. Academically sound and practical, it offers top executives much insight into brand value applications. “
Kevin Lane Keller
E.B. Osborn Professor of Marketing
Amos Tuck School of Business
100 Tuck Hall
Dartmouth College
Step inside to find out more.
The originators and their product
Roger Sinclair PhD. is a professor at the University of the Witwatersrand (Wits) in Johannesburg , South Africa . He teamed up with his colleague Professor Johann de Viliers PhD who at the time was Professor of Corporate Finance in the same establishment. Between 1993 and 1998 they developed the model using local companies as willing test cases. Roger is now an honorary professor (awarded in recognition of his contribution to the faculty) at Wits but Johann has since returned to his hometown of Stellenbosch in the Cape where he is Dean of Commerce at the University of Stellenbosch .
BrandMetrics was established in 1999 to market the methodology and in just five years the company has completed some 360 valuations which have between them a combined value of over $90 billion. The client list, which includes some of the world's great brands, is a blue chip portfolio of South African business.
Six
reasons for BrandMetrics' success
| Attributes |
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Benefits |
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| A
university development |
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Survived
intense scholarly scrutiny |
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| Links
marketing to the boardroom |
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Makes
marketing accountable - in financial language |
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| Web
based application |
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Allows
for valuations from any location and cloning of original
for scenario planning |
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| Suitable
for accounting, taxation, investor relationships and marketing |
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Uses
standard corporate finance and accounting tools and is
being used by major companies for all these purposes |
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| Increasing
popularity in South Africa and abroad |
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Regularly
win in competitive pitches against the world's leading
branding companies both at home and overseas |
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and Hosted by Redi Internet |