What is Brand Asset Valuation? Well, put plainly, it’s one way to measure brand value. Put in HBO’s Big Little Lies speak, it’s how you measure your value, standing, and reputation in Monterey.

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Originally developed by the agency Young and Rubicam, Brand Asset Valuation measures your brand under two major umbrellas: 1. Brand Vitality and 2. Brand Stature. Your brand’s vitality refers to current and future growth potential (aka, are you the Jane Chapman of your industry and can you recover from the Ziggy drama?). And your brand’s stature refers to the power your brand holds (aka, how much Madeline Martha Mackenzie clout does your brand wield?). But the Brand Asset Valuation model doesn’t end there. It further breaks brand measurement into four additional quadrants:

1. Differentiation

Can your brand stand apart from competitors in your industry? The Brand Asset Valuation model asks if your brand is different, unique, and distinctive. “Different” refers to what your brand offers its customer that differentiates you from your rivals. “Unique” refers to your brand’s quality, authenticity, and originality. And “distinctive” refers to brand worthiness.

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2. Relevance

This point of reflection asks if your brand or product offering is relatable to your consumers. It’s an important question as relevance is often a key indicator of potential penetration into your target audience. Are you the Renata Klein of your industry, kicking ass but finding it difficult for those around you to relate to your perfection? It might be time to refresh your image … as painful as that may be.

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3. Esteem

Esteem alludes to consumer perception about your brand. Is your brand popular? Does it deliver a community theater production of Avenue Q when it promises to? These attributes build brand esteem, and without it, you’re left with little consumer confidence and even less brand loyalty.

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4. Knowledge

This is all about brand awareness. Is your consumer thinking about your brand often? And do they really understand what your brand stands for? If your audience has a different perception of what your goals and brand values are, you may not align in the long run. Rebuilding your brand image to better reflect your goals is better done before consumer perception is too set in stone.

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What to Do with All That Data

Like your grudges, tend to your brand asset valuation like little pets. Once you’ve measured your brand against these key indicators, you can get an idea of the health, strength, and outlook of your brand. For instance, you can add the relevance and differentiation of your brand to get an idea of your brand’s health and future value, rather than simply reflecting the past.

You can also look at how your brand performed against the esteem and knowledge indicators, to discern your brand stature, which is more indicative of past brand performance. Monitoring your brand’s past, present, and future health is as important as keeping tabs on your credit report. If you’re not taking a good, hard look every few months, you don’t know if and when something’s gone wrong.

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Keep Everything in Perspective

At the end of the day, these indicators are important, but so are the intangibles of your brand’s success. You can’t predict every turn your brand is going to make, and you can’t please every asset of your audience all the time. The Brand Asset Valuation model is meant as a way to check your brand’s pulse and shift or maintain direction accordingly. At the end of the day, you know your brand best, so whisper-talk through yoga if you want and let your brand do it’s thing.

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Want to continue learning how to make your brand the Madeline Mackenzie of your industry? Check out our free eBook, “6 1/2 Ways to Tell a Brilliant Brand Story” below.

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