Spotify, Netflix, Amazon among biggest risers in amid global lockdowns: Interbrand

Spotify, Netflix and Amazon are among the biggest risers in ranking amid global COVID-19 lockdowns. Notably, however, Microsoft has also entered the top three. This was revealed in Interbrand’s Best Global Brands 2020 report.

In 2020, in a year of turbulence so seismic in scale and rapid in impact that the world is still computing the effects, the aggregate value of the Top 100 Best Global Brands has grown by 9%. Their total brand value exceeds $2 trillion.

As the pandemic and wider social outrage exposed fault lines in society and polarised people further; a similar divergence is seen in the Best Global Brands with 43% of brands growing, and 57% declining in value (vis-a-vis 29% declining in 2019).

This years’ winners are notable for particularly fast growth; the average increase amongst the top 3 brands alone was 50%. It’s clear that in 2020, strong brands have become stronger as a result of the COVID effect, which has accelerated digital transformation trends, such as cloud-based tech and streaming, across sectors, reinforcing the dominance of technology first brands.

PayPal is one of 2020’s fastest risers, thanks to a radical application of its values and the trust those actions drive. The fastest risers in 2020 (brands experiencing double digit % growth) significantly outperformed other brands on three Brand Strength factors – Empathy, Agility and Affinity.

Microsoft has become a Top 3 Best Global Brand in 2020. Behind Microsoft’s incredible transformation is an extraordinary cultural shift, underpinned by empathy – regarded by its CEO, Satya Nadella as a leadership trait as much as a business priority and an innovation ethos, he connects the core of the business with customers’ needs through a deep sense of empathy.

Amazon, who invested over $28 billion on R&D in 2018, is making agility exponential. Powered by realtime data, AI and machine learning, its moves – from daily, one-to-one interactions to category changing Iconic Moves such as the introduction of the Prime membership – are effectively shifting fulfilment expectations in much of the world.

Spotify has developed deep affinity with customers. From its proposition, which promises to put the world’s music in your pocket, to its partnerships with platforms that are central to culture (mobile networks, gaming devices), perhaps its most iconic move is using its customer data to tell stories about how its embedded in the emotional and social lives of customers around the world.

Also of note: more than half of the top growing brands have significant subscription model businesses.

The year 2020 sees three new entrants and two re-entrants. The new entrants – Instagram, YouTube and Zoom – mirror the overall trend of a fractured society, in which we see huge uptake of brands that are designed to connect us. Furthermore, they reflect the wider trend of the table, the growth of which has primarily been driven by technology brands.

Social media and communication brands have fared exceptionally well in the past 12 months, with Instagram (#19), YouTube (#30) and Zoom (#100) entering the rankings for the first time. Zoom’s market capitalisation has risen 389% in 12 months. Its revenue is up 270% in the first half of the year and its brand has enjoyed enormous growth thanks to the accelerating digital transformation in consumers working lives. Instagram and YouTube have entered the rank this year thanks to improved financial reporting from Facebook and Alphabet.

Tesla has also re-entered the rankings at #40, having last appeared in the Best Global Brands table in 2017. Tesla’s market capitalisation has risen 769% in 12 months, its revenue has risen 10% in six months and the production launch of the futuristic Cybertruck, as well as the launch of connected services and plans to roll out a “Tesla Network” of self-driving “robotaxis,” has cemented the brand with its core customer group.

Johnnie Walker also re-enters in 2020. Though its market capitalisation was affected by COVID-19, it remains a highly distinctive brand, with a newly updated visual identity.

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