Brandirectory (by Brand Finance)

Brandirectory​‍​‌‍​‍‌​‍​‌‍​‍‌ Review: The Ultimate Ledger for Brand Value and Strategy If marketing, finance, or corporate strategy are a part of your job, you may have experienced a scenario in which the person leading a meeting asked, "So what is our brand really worth?" Up until recently, that question was a "vibe" one. You might have used customer sentiment or a brand-new stylish logo as a pointer. However, today in a corporate boardroom, "vibe" just doesn't suffice. You require real numbers, sector benchmarks, and global rankings. Here comes the Brandirectory line-up led by Brand Finance . I have heavily invested my time in analyzing thoroughly their reports to figure out, among other things, why major global players such as Apple, Amazon, and Ferrari, highly regard these rankings. This is my candid review of the platform and whether or not it is a tool for measuring your competitive edge that you should be utilizing. Brandirectory explained Brandirectory represents a database of brand value reports that is by far the largest in the world. The vast majority of the websites rank companies based on the most commonly used metrics such as market capitalization and revenue whereas Brandirectory tracks value through the Royalty Relief approach. In other words, the brand value is estimated based on how much a company would be willing to pay to license its own brand from a third party. It is basically a huge collection of "Brand Strength" and "Brand Value" data from literally every industry you can think of—from airlines and oil & gas to luxury apparel and telecommunications. The Core Metrics That Matter The reason Brandirectory stands out from a usual top 10 blog post is the thoroughness of its methodology. Besides revealing a single number in dollars, they also allocate it into three distinct segments:

1. Brand Strength Index (BSI) Consider this a "health status" report of a brand. They analyze the elements of marketing investment, stakeholder equity (basically how much users trust/love the brand), and business performance. A total score out of 100 is given. A brand with a high BSI score today is very likely to be thus increasing its brand value in the next years.
2. Brand Royalty Rate This is the money part. After evaluating BSI, Brand Finance associates the application of the sector-appropriate royalty rate. In this way, they can assign a concrete figure to the brand's impact on the company's profits.
3. The Global Rankings This is the most well-known feature of the platform. For example, you can filter for the country (e.g. "Top 50 Brands in Germany") or for the sector (e.g. "Most Valuable Banking Brands"). A corporate ego and an investor's confidence have thus never had such a great tool. Standout Features of the Platform Deep dives of Sector-Specific Brandirectory goes a step further than general business magazines. They recognize that a "Soft Drink" brand and a "Defense Contractor" brand cannot be measured by the same yardstick. They delve so much into each sector, the granularity of their reports is astonishing. If you are in the "Insurance" line of business, you can find out on a global scale who your closest competitors are and where you can find your gaps. The "Brand Strength" Funnel The funnel provided here gives you a visual breakdown of a brand that transitions from "Awareness" to "Familiarity" to "Recommendation." For a CMO, such a tool can be invaluable. It lays bare the exact point or points in the customer journey where the leakage happens. Hence, if people do not recognize your brand at all, then that is why they are not using your products or services; Global Reach Brandirectory's focus isn't limited to Silicon Valley; rather, it is a globally comprehensive brand database. From the Middle East, Asia and Africa, to local brands, their data is undoubtedly most versatile. Therefore, any business that operates locally and targets emerging markets in tandem with local branding strategies should definitely consider this tool. The Pros: Why It’s the Gold Standard Financial Rigor: Brandirectory's methodology is ISO-compliant, ensuring that their research is more than just a survey; it is a financial audit of a brand's strength. Competitive Intelligence: You can always know where your competitors are investing more to overshadow you or if their reputation is decreasing, thus giving you the first-mover advantage. Investor Relations: When you want to convince the CFO of a rebranding campaign extravaganza or a marketing budget hike, showing him a Brandirectory report is the most efficient way to communicate in business language. Historical Benchmarking: Viewing a brand’s trajectory over a decade allows you to get the real touch of the influence of a CEO or strategy on the brand value.

The Cons: What to Keep in Mind The Paywall: Although the basic rankings are free and very useful, the high-level, 100-page detailed reports cost a lot. They are intended for the corporate libraries and consultancy firms. Lagging Indicators: Since the data is very thorough, it mostly reflects the performance of the last fiscal year. Therefore, if there is a scandal involving a brand happening today, it might take several months before it is reflected in the BSI. Density: The reports are not intended for casual reading. You get data-heavy, dense documents. If you have no working knowledge of finance, you might find the methodology section quite challenging.

Brandirectory vs. Interbrand Interbrand: Mainly is concerned with the "brand experience" and the emotional relationship. It is deeply favored by the creative and design communities. Brandirectory: Emphasizes the financial value aspect. Analysts, CFOs, and strategists who need to put a figure on the brand equity in terms of dollars and cents prefer it.

Final Verdict: The Truth Behind the Logo Brandirectory is the only platform where the "art" of branding is skillfully combined with the "science" of finance. It takes aside the marketing jargons and discloses the actual economic power of a brand. This platform is a clarity beacon for an investor seeking undervalued stocks or a marketing executive wanting to prove productivity that they simply cannot get elsewhere. Therefore, we could say that it is almost a "Fair Market Value" of the world's best ​‍​‌‍​‍‌​‍​‌‍​‍‌inventions.