Yes, for all intents and purposes those questioned are interested in finding out, what the value of their brands is. But since in their opinion there are no truly solid benchmarking systems, it would be best to leave the brand equity where it is currently resting and slumbering, aside from a few exceptions, namely in the dark as a hidden reserve. With due respect, I think this is a big mistake. Brands, if they are true brands and not simply a name, a label or a tag, often account for fifty percent and more of the corporate assets. There are instances where the whole company value consists of brand equity and this could be a value in the millions. Is it really justifiable if such values simply languish? What is the sense in investing in brands over years and decades, spending lots of money on communication, establishing markets and maintaining them, without ever knowing what monetary brand equity is established and what the return-on-investment is, that needs to be generated with this equity.

I think it is less the problem of establishing monetary brand equity, even though the many different evaluation systems don’t make it easy to come to the correct results. However, I can speak from my own experience, that there are ways of calculation that lead to the correct result. You just have to be willing to follow this path. I put this so explicitly, because I think that many businesses feel comfortable with brand equity as a hidden reserve, even though they ought to feel unwell. In the long run, who can do without burying brand equity according to the bible story?

The study I mentioned earlier says that the questioned businesses see the problem with establishing monetary brand equity in, and I quote, “insufficient options to track business success”. They also blame “insufficient measurement procedures” and overall “missing economic performance indicators”.

“Nice to know” does not sound convincing. Brand equity, corporate equity and product brand equity should not simply be depicted with nice words and pictures. No, their value has to be known as monetary equity and it needs to start accruing return-on-investment. Surely, if taken seriously, this conclusion is going to lead to considerable changes in asset management all the way to accounting. Short-term this could mean some trouble, but long-term it is going to bring big advantages to many businesses.

Monthly, we publish a special BriefLetter on the topic Brand Equity and Performance. You can get to it via the BriefLetter website or directly at www.brand-equity-performance.com. Or if you wish, we would gladly talk about this topic in person.