Increasingly, consumers and the markets alike favour brands offering content that can be easily shared. The news site BuzzFeed, for example, has just secured $50m of funding which, according to The Guardian, raises its value to three times more than the Washington Post. BuzzFeed’s whole concept has been designed with social media in mind (apparently 75% of its traffic comes via social media users) and it rewards its writers not by the number of readers attracted by their work, but by the number of times their articles are shared online.
It’s clear that BuzzFeed is becoming one of a new breed of ‘strong’ brands. However, traditional methods of evaluating brands don’t take social status into account. So current brand rankings such as the Interbrand index are more likely to reflect the size of a promotional budget rather than the loyalty and engagement of customers.
For instance, Samsung has featured highly on the Interbrand index for the past five years. Yet it’s known for mimicking the design of competitive products and buying market share with large advertising budgets. On the other hand Apple earns its valuation by investing in product alone. Read More