The World’s Most Valuable Brands, Africa continues to elude ranking
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The world’s top 500 most valuable and strongest brands are included in the annual Brand Finance Global 500 ranking – now in its 16th year.
World’s valuable brands – Tiktok named the fastest-growing brand
Tripling in brand value over the past year, TikTok has been named the world’s fastest-growing brand by a new report published today. With an astounding 215% growth, the entertainment app’s brand value has increased from US$18.7 billion in 2021 to US$59.0 billion this year. Claiming 18th spot among the world’s top 500 most valuable brands, it is the highest new entrant to the Brand Finance Global 500 2022 ranking.
With COVID-19 restrictions still in effect across the globe throughout 2021, digital entertainment, social media, and streaming services saw continued growth, and TikTok’s rise is a testament to how media consumption is changing. With its offering of easily digestible and entertaining content, the app’s popularity spread across the globe, however, it also acted as a creative outlet and provided a way for people to connect during the lockdown.
At the same time, strategic partnerships, such as its sponsorship of the UEFA Euro 2020 tournament, exposed TikTok to demographics outside of its original Gen Z base. It crossed the one billion user mark in 2021 and became the most downloaded app across Android’s Google Play Store and Apple’s App Store.
World’s most valuable Brands – Apple holds on to the top spot with a record valuation
US$355.1 billion – the highest brand value ever recorded in the Brand Finance Global 500 ranking.
Apple had a stellar 2021, highlighted by its achievement at the start of 2022 – being the first company to reach a US$3 trillion market valuation. The tech giant’s success historically lied in honing its core brand positioning, but its more recent growth can be attributed to the company’s recognition that its brand can be applied effectively to a much broader range of services.
The iPhone still accounts for around half of the brand’s sales. However, this year saw Apple give more attention to its other suite of products with a new generation of iPads, an overhaul to the iMac, and the introduction of airbags. Its range of services, from Apple Pay to Apple TV, has also gone from strength to strength and become of increasing importance to the brand’s success.
World’s most valuable Brands – Amazon and Google are 2nd & 3rd respectively
Amazon and Google also saw good levels of growth, both keeping their spots in the Brand Finance Global 500 ranking behind Apple in 2nd and 3rd respectively. Amazon joined Apple in crossing the US$300 billion brand value mark with a 38% increase to US$350.3 billion, navigating global supply chain issues and a labour shortage in the process.
Google saw a similar brand value growth of 38% to US$263.4 billion. The brand relies on advertising for the vast majority of its revenue and was hurt at the start of the pandemic as advertising spending dropped due to uncertainty. However, as the world adjusted to the new normal, and with people spending more and more time online, advertising budgets opened back up and Google’s business rebounded, resulting in a healthy uplift in brand value.
World’s most valuable brands – African brands still outside the ranking
Brands from the United States and China continue to dominate the Brand Finance Global 500. Over two-thirds of the total brand value in the ranking is attributable to the two countries, with the US accounting for 49% (US$3.9 trillion) and China for 19% (US$1.6 trillion).
There are still no African brands in the Brand Finance Global 500 2022 ranking as global brands continue to dominate on the continent. MTN is Africa’s most valuable brand at US$4.0 billion – just over US$600 million below the threshold of the top 500 rankings this year.
Jeremy Sampson, Managing Director, Brand Finance Africa, commented:
“It is estimated that Africa will soon house a quarter of the world’s population, making it a lucrative location for global multinational brands. Within this context, no African brands feature in the ranking of the world’s 500 most valuable, as many local brands have been discontinued by global giants. However, South African telecoms giant, MTN is currently performing very strongly and is well-positioned for the future, so could be expected to move closer to being included in the ranking next year.”