Multi-Platform SuperBrand Portfolio Introduction
Market Powerful SuperBrand Partnership Portfolio
It's no secret that a company’s ability to address its overall commercial objectives beyond pure financial performance is an important driver and indicator of future success. The impression of a company’s brand by those who buy from, invest in, or work for it, can foster trust, drive innovation, increase margins, and scale persistent growth in global market share.
Establishing a robust SuperBrand Portfolio foundation allows a company the ability to thrive not only today but also tomorrow and into the future. Strong portfolio branding creates opportunities for global growth, command market share, heighten barriers of entry for competitors, and establishes the foundation upon which to build enduring consumer loyalty.
Strong SuperBrands enhance positive perceptions of a product’s quality, scales higher levels of product awareness, underpin product and service pricing, and fosters consistent top-of-mind brand portfolio awareness. Moreover, the deployment of exceptional SuperBrands effectively reduces brand-related market friction and converts potential customers into highly engaged brand advocates.
The robust brand strength of the GlobalDigital.Com® SuperBrand Portfolio drives a market powerful sense of digital identity and purpose while acting as the center of gravity and highly effective corollary pivot point from which to build-out brand synergized portals, platforms, verticals products, and services. Such flexibility is key because a harmonized brand portfolio combination is the foundational constancy that accelerates scalable business growth across markets.
As new dynamics emerge and change the shape of business by the minute, it demands new ways for organizations to harness and channel that change. The strength and market power of the iconic GlobalDigital.Com® SuperBrand Portfolio provides a unique opportunity to drive relentless expansion into new digital markets - organically growing in market relevance, consumer influence, and enterprise value.
Digital SuperBrands Soar In 2021
A New Decade Of Possibility
The year 2020 has been a year of turbulence so seismic in scale and rapid in impact that the world is still computing the effects in 2021. In the face of highly disruptive market headwinds, digital brands are continuing to scale in value across market sectors. Such escalation in brand-driven I.P. growth is reflected in the latest Brand Finance PLC Global Intangible Finance Tracker "GIFT 2020 Report".
This report states that despite a turbulent year, global brand-driven intangible value is now at an all-time high of US$ 65.7 Trillion. To put this figure into perspective, this intangible value amount exceeds the 2020 GDP for the top fifteen leading countries combined, according to the most recent IMF Global GDP economic report.
As Brand Finance explained "Over US$ 10 Trillion of this intangible value resides in the top 10 - Apple, Amazon, Aramco, Microsoft, Alphabet, Facebook, Alibaba, Tencent, Tesla, and VISA." Such unprecedented growth in SuperBrand portfolio I.P. value is underpinned and driven by the market power of these digitally-driven SuperBrands.
It is clear that in 2020, strong brands became stronger as a result of the COVID 19 effect, which has accelerated digital transformation trends, such as cloud-based technology and streaming, across market sectors, reinforcing the dominance of technology-first brands. In 2021, this transformed market gravitates towards the intuitive identity of SuperBrands that have proven to be persistently relevant and resilient.
In 2021, a brand portfolio's fundamental role and value drivers will continue to evolve with the normalization of market discontinuity, volatility, and disruption. The new normal is not the old normal and the primary role a brand portfolio plays in market leadership, business growth, and engagement has never been more important.
Brimming with emotional strength and inspiration, GlobalDigital.Com® SuperBrands thrive in this new turbulent market being globally inclusive, immediately recognizable, and understood across markets, cultures, and languages. This SuperBrand portfolio embraces both diversity and inclusion, vital attributes to create immediate inspirational engagement with customers and partners across the street, and around the globe.
The preexisting global strength and power of the GlobalDigital.Com® SuperBrand Portfolio provides the opportunity to extend relentlessly into new sectors and geographies organically growing in market relevance, consumer influence, and scalable value. With instinctual simplicity, this global SuperBrand portfolio is immediately understood across diverse markets, resonating with exceptional global market power.
Global Digital SuperBrands Are Super Assets
The role of the brand has never been more essential, acting as the core value-generating contributor to a company's IP value while persistently contributing to an enterprise's overall revenue growth over the long term. You can have the most advanced products, systems, and services, but without meaningful branding, these assets will never realize anywhere near their full revenue potential in any marketplace.
This is why it is vitally important to partner with or acquire a dynamic Superbrand Portfolio that delivers the combination of leading fundamental financial drivers and powerful brand elements that best leverage your products, systems, and service offerings now and over the long-term. It is also a top priority to optimally value acquired and existing brand portfolios in the balance sheet.
Until recently, it has been common practice for accountants to conservatively value brands in the balance sheet. Internal financial teams argued for the lowest valuation possible to reduce the risk of potential impairment at a future date. They push for a larger goodwill amount and a lower brand value in the balance sheet, traditionally amortizing brand portfolio valuations over 5 to 7 years.
Leaders in the global professional accounting community realized that this short-sighted approach to brand valuation and amortization did not make economic sense but they lacked ISO brand valuation tools to implement much-needed change.
This changed occurred in 2018 with the introduction of ISO 20671 accounting policies coupled with ISO 20666. Now, a companies brand portfolio can be regarded as long-lived assets whose value is driven by several inputs including marketing investments tied to enterprise revenue performance. This is further discussed hereunder in the section titled "Accounting Treatment Of Goodwill And Brands".
Value Drivers Of Native .Com Digital Brands
Priceless inspiration and deep emotional connection spark in the unspoken moment of .Com Superbrand engagement. These market powerful .Com Superbrands possess real-world vitality that drives transcendent exponential organic commercial growth. With such huge dynamic demand pull, it's no wonder that there is an increasing global scarcity in the supply of premium native digital .Com Superbrand domains.
Unprecedented demand for .Com Superbrand domains is also driven by over 100 million new global company start-ups per year including 1.35 Million tech start-ups. In addition, there is enormous demand for Superbrands for the puposes of corporate rebranding, platform and portfolio expansion branding, SPAC's (blank check companies) and, M&A branding. Collectively, these parties are applying strong upward price pressure on native digital .Com demand and acquisition pricing.
Companies and investors around the globe are seizing the obvious advantage by immediately acquiring market relevance with native digital branded .Com domains. Hyper-accelerated market demand is driving unprecedented sales levels for super-premium native digital domain assets with most high dollar sales transacting in private.
There is sound reasoning behind the acquisition of Native Super Premium .Com domain assets. Over the past 35 years, US$ Trillions have already been invested in global digital advertising channels with increasing prioritization by individuals, groups and, corporations in owning Super-Premium .Com domain addresses as part of their speed-to-global brand strategy.
In 2020, $322.84 Bn. (see slide below) was invested in digital advertising across global mobile and programmatic platforms with 99% of such brands incorporating the dominant globally understood .Com extension. However, the COVID-19 pandemic triggered a fall in ad spending between January and March 2020, as one-quarter of media buyers and brands paused their budgets in times of economic uncertainty.
This massive growth in digital advertising investments dynamically scales accelerated SuperBrand .Com native digital brand name values that continue to grow in importance, and, have become integral and inseparable parts of the global multi-cultural parlance of modern speech and expression.
Nevertheless, many of them adapted to a new environment where businesses and consumers are getting used to living with COVID-19 and adjusted their budgets in response. As a result, the global digital ad spending is expected to grow to $389.29 Bn in 2021- see chart below.
Strong native digital brands that include Global Digital Superbrands are exceedingly valuable assets for any business. These momentum driven brands accelerate revenue growth, foster higher customer acquisition and retention, underpin product and service satisfaction, brand loyalty, and, brand advocacy, dynamically contributing to a given business's growth and profitability.
This puts the GlobalDigital.Com® SuperBrand Portfolio in a class by itself because the supply of comparatively aligned SuperBrand Portfolios are non-existent in the global digital market.
Ad Value Drivers Of Native .Com Digital Brands
GlobalDigital.Com® Superbrand Portfolio Is Positioned
At The Leading Edge Of Defensible Brand Value Creation
Supreme Court Rules That .Com Brands Can Be Registered As Defensible TradeMarks
On June 30th 2020, the U.S. Supreme Court held in an 8-1 decision in United States Patent and Trademark Office v. Booking.com B.V. that Booking.com, N.V., one of the world’s leading digital travel companies, can now register as a distinguished trademark incorporating its .Com domain name - BOOKING.COM.
The Supreme Court rejected the United States Patent and Trademark Office’s (“USPTO”) proposed per-se rule that a generic term, when combined with the .com top level domain, must automatically be deemed generic and therefore ineligible for trademark protection.
For registrants of generic term .Com and top-level domains, the Supreme Court decision validates that such .Com domain names are fully capable of trademark protection. This ruling adds enormous defensible and scalable value for Booking.Com and more importantly for the GlobalDigital Superbrand Portfolio that includes a grandfathered multi-national GlobalDigital.Com® registered trademark.
This registration acts as a defensible cornerstone for portfolio trademark filing opportunities that add scalable defensible I.P. asset value across the GlobalDigital.Com® Superbrand Portfolio.
I.P. Outperforms Any Other Corporate Asset Class
& SuperBrands Are Top Tier I.P. Asset Contributors
The Most Recent Ocean Tomo Intellectual Assets Market Valuation Report
Sets-Out The Persistent Growth of Brand Based I.P. Value Across Fortune 500 Companies
INTANGIBLE ASSET MARKET VALUE STUDY
Ocean Tomo has released an interim update to the Annual Study of Intangible Asset Market Value (IAMV). This update captures the IAMV as of July 1, 2020, as countries around the world began to open up following the COVID-19 pandemic outbreak.
The study examines the components of market value, specifically the role of intangible assets across a range of global indexes. In this update, IAMV is calculated by subtracting net tangible asset value from market capitalization.
Brands Are long-lived Productive IP Assets
That Drive Global Economic Growth Of An Enterprise
Ocean Tomo noted "As the COVID-19 pandemic has impacted economies all across the globe, we have expanded our IAMV study beyond the S&P 500 to explore the components of value in several key international markets. Stock market indexes from Europe, China, Japan, and South Korea were selected and analyzed to determine the comparable role of intangible assets."
As the world went into lockdown, sheltering-in-place in response to COVID-19, Ocean Tomo began to examine if the coronavirus would have any impact on intangible asset market value. Ocean Tomo's experience spans more than three decades and suggests that Intellectual Property (IP) is a noncorrelated asset. In the short term, they expect I.P. to remain persistently resilient during the COVID-19 pandemic driven recession." Please refer to the Ocean Tomo Report for more details.
The Most Recent Ocean Tomo Intellectual Assets Market Valuation "IAMV" Report
Sets-Out The Persistent Growth of Brand Driven I.P. Value Across Fortune 500 Companies
$27.5 Trillion & Counting
Total S&P Market Cap US $30.5 Trillion
(as of August 31, 2020)
As of August 30th, 2020 S&P companies corporate assets amounted to $30.5 Trillion combined. Based on Ocean Tomo's recent S&P IP valuation, 90% of the aforementioned number equals $27.5 Trillion of S&P market valuation, that is growing at a strong persistant annual pace.
This expanding I.P. asset class underscores the disruptive shift in the global economy from hard, tangible assets to intangible assets. With over $27.5 Trillion, or 90 percent of the value of the S&P 500, being intangible, strategic investment in the development and deployment of IP is changing the global asset landscape across platforms, industries, countries, and regions.
Global Digital SuperBrand Portfolio Drives
Overall Enterprise I.P. Asset Valuation
Digital brands, products, services and knowledge travels at lightspeed, and where they go, so goes intangible assets. Companies, industries, and brands that persistently scale intangible assets experience optimal growth. Since 1985, S&P 500 companies have steadily increased their I.P. holdings from 2X to more than 5X the number of intangible assets as tangibles. Assets like IP, data, and brand have surpassed real estate and physical inventory as primary drivers of business value.
What used to be about creating product and service differentiation in the global market, now requires the ability to pivot with a nimble and inclusive GlobalDigital.Com® SuperBrand Portfolio that dynamically outperforms in the unyielding turbulence of multi-cultural global markets. With so many directions to grow in, simplified brand flexibility and adaptability reduces friction and accelerates sector by sector and overall enterprise growth.
With the unavoidable acceleration of global commercial disruption, an enterprise's branded business Intellectual Property is destined to continually evolve and expand thereby naturally increasing the importance of this top-tier diversified asset class of SuperBranded Intangible Assets.
Global Digital January 2021 Report
With COVID-19 Update
Global Digital Adoption Still Growing At A Rapid Pace The global digital landscape is evolving rapidly as we enter 2021, with the ongoing Coronavirus pandemic continuing to influence and reshape various aspects of people’s daily lives. Lockdowns may have been lifted lifted across many countries, but many of the new digital behaviors that people adopted during confinement will endure, resulting in meaningful increases in various kinds of digital activity.
For context, Akamai reports that global internet traffic has grown by as much as 30 percent this year, while research from GlobalWebIndex shows that we’re still spending considerably more time using connected tech than we were at the start of 2020. All of this increased activity has resulted in the acheivement of important milestones and trends emerging in the Global Digital 2021 Statshot Report.
These changes have been clearly evident in the world’s digital behaviors as billions of people turn to connected devices to help them cope with socially distanced lifestyles and work habits.
GlobalDigital.Com® SuperBrands Organically Harmonize Across Markets
The dynamic strength and power of the GlobalDigital.Com® SuperBrand Portfolio provides the opportunity to extend relentlessly into new digital sectors and geographies, organically scaling in market relevance, consumer influence, and extensible value.
With instinctual simplicity and genuine promise, the harmonized GlobalDigital.Com® SuperBrand Portfolio that includes; MobileDigital.Com™, DataDigital.Com™, and LocalDigital.Com™ SuperBrand assets are immediately understood, naturally resonating with exceptional global market power.
The GlobalDigital.Com® SuperBrand portfolio seamlessly reinforces aligned brand identities across product and service applications naturally scaling intuitive brand equity. When your digital product and brand portfolio align, it creates the opportunity to tell a compelling, and cohesive digitally driven story.
A good example of GlobalDigital.Com® SuperBrand synergy is provided by the following example of technology working in harmony across the global, date, mobile, and local landscape.
The GlobalDigital.Com® SuperBrand Portfolio Creates
A "SPAC-TACULAR" Partnership Branding Opportunity
Despite the onslaught of Covid-19 and general market volatility, demand for top-tier Global SuperBrands has escalated at an unbridled pace. Major brands are seeking to expand their brand portfolios or have decided to adopt a more inclusive harmonized brand identity across their enterprise.
Robust global SuperBrand demand is growing from the SPAC sector. There has been a historic $83 billion in funding raised via a total of 248 SPAC's in 2020 alone, a more than 422% jump in SPAC's going public in 2019, and SPAC's have outpaced traditional IPO's by 4 to 1 in 2020 alone. In the first 2 months of 2021, 160 SPAC's have launched raising $48.3 Bn. averaging $304 MM per SPAC compnay.
The K-Shaped recovery has brought about the explosive growth and investment into Special Purpose Acquisition Companies or (SPAC" companies. They are also known as blank-check companies. This public company model has been around since the 1980s, but in 2020 has become a juggernaut creating high levels of liquidity and a strong market appetite to acquire innovative growth companies and pools of assets.
These cash strong hybrid public companies first raise funds in the public market and then seek asset-buying opportunities to create scalable value and revenue flow. Acquisition of business brands and other tier-one I.P. assets are top priorities for SPAC acquisition because such assets create immediate bookable value which is a market-defining commercial advantage from which to scale market momentum to build persistent scalable revenue growth.
Another factor is that the majority of SPAC corporate brands are hyphenations and brand mash-ups that have zero appeal and understanding in multi-cultural and multi-lingual B2B and D2C markets. Such a lack of business entity branding can be remedied through the acquisition of a new brand identity.
Brand acquisition funding can be facilitated by a SPAC Private investment in public equity deals (PIPE) an investor, or group of investors can provide additional capital to the SPAC in exchange for a private placement in the SPAC's public securities at a price typically equal to the IPO price.
Accounting Treatment Of Brands & Goodwill
Brands are among the most valuable assets in a company that oftentimes are undervalued and amortized to zero without cause or financial logic. In truth, the value of an organically harmonized brand portfolio, creating it, maintaining it, or, even better, growing it, is of significant importance to any enterprise that currently has, or aspires to have a scalable brand portfolio. Brands influence customer choice, and the power of a brand portfolio's collective commercial attraction influences sales today and tomorrow.
The introduction in 2018 by the International Organization for Standardization of ISO 20671 - of this new accounting standard in brand evaluation - motivates companies of all sizes to start adopting new approaches to managing and valuing their brand portfolios in a manner that fully captures the value of brands that harnesses operational marketing investments as corporate growth assets. Such initiatives accelerate overall enterprise value and materialize unaccounted shareholder value.
With the recent release of ISO 20671, Brand evaluation – Principles and fundamentals, Dr. Bobby J. Calder, Chair of ISO technical committee ISO/TC 289 on brand evaluation, explains how it covers the technical requirements and methods involved in measuring the strength of a brand.
ISO 20671 standard (“Brand Evaluation—Principles and Fundamentals,” available at www.iso.org), provides an effective framework for evaluating brands. It allows the contribution of brands and related marketing investments/expenses to be evaluated relative to a comparable unbranded product benchmark. In other words, what is the actual price percentage difference between comparable products, generic versus branded?
Any such product or service price comparison between generic and branded can also be contrasted and compared between generic and Native Digital SuperBrands such as; Global Digital®, Data Digital™, Mobile Digital™ and, Local Digital™. These SuperBrands create an immediate clean, crisp, and clear brand identity that persistently increases in value and commercial importance from the outset and over time.
Under ISO 20671, Native Digital SuperBrand domains scale in value because of their vibrant preexisting market presence and brand equity that has been built over decades as integral parts of the vernacular of the global digital conversation. Approaches to brand valuation can be researched at Brand Finance, the largest I.P. global brand valuation firm.
This standard extends the scope of ISO 10668, Brand valuation – Requirements for monetary brand valuation, that focuses primarily on the financial valuation of brands. Ultimately, ISO 20671 aims to help resolve the differences of opinion around conventional accounting treatments of a brand.
The ISO opinion piece "What's In A Brand ? Quite A Bit Actually" offers relevant insight into the application of ISO 20671 accounting policy.
The vision behind such a straight forward and transparent evaluation process is that it should become part of the movement towards integrated reporting or (IR). This approach sets-up the opportunity to add and grow currently unrealized value to an enterprise's balance sheets.
Brand Finance PLC
Forbes ISO 20671 Analysis "Carpe Brand"
As reported by Forbes in its "Carpe Brand" blog post "Such financial reporting has a number of advantages. First, it provides marketing and finance with a common focus. Second, treating the brand as a financial asset plays an important role in corporate asset valuation. An increase or decrease in brand value would be a matter of dynamic accountability rather than the traditional straight-line depreciation of brands over a very limited number of years. Evaluating brand value would also be useful for risk management in guarding against brand and reputation risks.
Third, investors would have access to an important piece of financial information that they presently can only guess at. Market caps might better reflect identified business assets. Over time, standards could be developed to make it easier for investors to compare companies. As intangible assets become more and more important, this is of enormous value for investors distinguishing between leading companies from those not investing in brands as valuable business assets."
New ISO 20671 Brand Valuation Methodology
This policy contends that goodwill does not necessarily decrease in value or is subject to amortization as time goes on. However, it can also allow persistent high levels of goodwill on company balance sheets, the reported value of which is dependent on management judgment. Where neither company managers nor auditors feel an impairment is due, no impairment charge is taken against the carrying amount of the goodwill asset."
The leading brand valuation methodology is the Royalty Relief methodology which determines the value a company would be willing to pay to license its brand as if it did not own it. This approach involves estimating the future revenue attributable to a brand and calculating a royalty rate that would be charged for the use of a given brand or brand portfolio.
Accountants have long resisted treating brands, as well as other intangibles, as assets because of the difficulty of relying on the justifiable “current fair market value” of a market transaction. Accountants have preferred to expense marketing activities, but, at the same time, they continue to rely upon the ever-nebulous treatment of “goodwill” as a rock-solid -largely self-regulated- asset class in the balance sheet.
Second, treating the brand as a financial asset plays an important role in corporate asset valuation. An increase or decrease in brand value would be a matter of dynamic accountability rather than the traditional straight-line depreciation of brands over a very limited number of years. Evaluating brand value would also be useful for risk management in guarding against brand and reputation risks.
Restructuring Balance Sheets Dependent On Goodwill
Historic goodwill values and future profit projections are subject to ongoing change because of market sector shifts and disruptive innovations. Perilous non-impairment of goodwill can inflate the balance sheet, leaving investors, supply chain stakeholders, employees, and entire economies vulnerable. Corporate raiders have been known to use overvalued goodwill as a point of leverage in corporate takeovers.
It is important to note that brands at the very heart of an enterprise's goodwill are oftentimes subject to aggressive amortization schedules between 5 to 7 years and are regularly not reflected in any such impairment calculation of corresponding goodwill. This can leave such companies with excessive levels of goodwill precariously primed for an asset crisis.
As valuation expert Annie Brown of Brand Finance puts it "When one company is bought by another, a fair value exercise (FVE) must take place to allocate the consideration paid to net tangible assets and identifiable intangible assets. Any remaining unallocated value is classified as goodwill. Since 2001, the IASB has adopted the policy that goodwill identified on the acquisition of a company will subsequently be accounted for through impairments and not annual amortization. This policy contends that goodwill does not necessarily decrease in value as time goes on.
However, it can also allow persistent high levels of goodwill on company balance sheets, the reported value of which is dependent on management judgment. Where neither managers nor auditors feel an impairment is due, no impairment charge is taken against the carrying amount of the goodwill asset. In extreme cases, persistent non-impairment can inflate the balance sheet, leaving investors, employees and entire economies vulnerable."