Mainstream Media Companies Claim Twitter Brand Cracks Under Musk’s Watch, Despite It Achieving Record Growth in Users and User Improvements
By Bran Directory
BRAND FINANCE MEDIA 50 2023
Twitter Brand Cracks Under Musk’s Watch
- Twitter’s brand value falls 32% to USD3.9 billion and brand strength sinks 11-points
- Google crowned most valuable and strongest Media brand, valued at USD281.4 billion
- LinkedIn making connections as Media’s fastest-growing brand, up 49%
- WhatsApp enters the chat as the highest new entrant in 17th, valued at USD8billion
- WeChat has highest Sustainability Perceptions Score, rated 6.27 out of 10
Twitter’s brand value falls 32% to USD3.9 billion and brand strength sinks 11-points
Elon Musk’s tenure as CEO at Twitter (brand value down 32% to USD3.9 billion) sees the brand drop 8 positions in the Brand Finance Media 50 ranking this year. This is largely due to Brand Finance research finding a significantly weaker perception of the brand causing a very large 11-point drop in brand strength, and subsequent demotion to a brand strength rating of AA.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest Media brands are included in the annual Brand Finance Media 50 2023 ranking. This year’s ranking of the world’s most valuable media brands is again dominated by consumer-facing online tech companies, especially in social media.
Aggressive business approaches from Twitter CEO Elon Musk have contributed to Twitter’s brand value and brand equity erosion. Customers and stakeholders have perceived large redundancies negatively, which compound difficulties for the brand to retain advertisers and rld’s corresponding revenue. Brand Finance’s research reveals since Musk’s takeover, Twitter’s reputation has decreased substantially.
Richard Haigh, Managing Director of Brand Finance commented:
“The acquisition and privatisation of Twitter presented a strong and interesting investment case. However, the positive outcomes that some anticipated for the Twitter brand have not materialised. Brand valuation considers intangible and tangible assets, and Musk has overlooked one of brands’ most important resources: people. Twitter needs to address issues surrounding its reputation and brand equity to return to brand value growth.”
Google crowned most valuable and strongest Media brand, valued at USD281.4 billion
Google (brand value up 7% to USD281.4 billion) remains the world’s most valuable Media brand for the third consecutive year. The Californian tech giant continues to dominate the sector with a brand value more than four times that of its runner up, TikTok/Douyin (brand value up 11% to USD65.7 billion). Google’s healthy year-on-year brand value growth is the result of continued evolution and expansion of its services, including Google Wallet, Google Pixel and Google Cloud.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors. As well as being the strongest brand in the United States, and the world, Google tops the Media ranking, earning a brand strength index score of 93.2/100 and a prestigious AAA+ rating.
LinkedIn making connections as Media’s fastest-growing brand, up 49%
LinkedIn (brand value up 49% to USD15.5 billion) claims the title of Media’s fastest-growing brand. In connection with its improved standing as a recruitment and news advertising tool, LinkedIn grew significantly. Globally, LinkedIn is building a very strong position amongst professional white-collar users as a dominant tool in this sector. First launched in 2003, the brand is growing strongly in part due to its integration with other Microsoft services.
WhatsApp enters the chat as the highest new entrant in 17th, valued at USD8 billion
WhatsApp (brand value USD8.0 billion) joins the ranking in 17th as the best-performing new entrant. As one of the most popular instant messaging platforms, the brand boasts around 2 billion active users each month. This past year, the end-to-end encrypted messaging tool launched new features to its services including features such as view once images/videos and online visibility. WhatsApp’s sister brand, Facebook (brand value USD59 billion) sits in 3rd in the ranking. Both WhatsApp and Facebook are owned by the same corporate parent, Meta.
WeChat has highest Sustainability Perceptions Score, rated 6.27 out of 10
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
WeChat (brand value USD50.2 billion), the Chinese multi-service super-app, is best-rated for perceived sustainability with a Sustainability Perceptions Score of 6.27 out of 10. This, in part, can be attributed to Chinese society’s prioritisation of ESG factors, deeming them crucial for economic growth and social stability. Additionally, as part of the Tencent (brand value USD38.1 billion) family, WeChat operates under the same ESG model. For example, in 2022, the parent company pledged carbon neutrality by 2030, as well as its commitment towards China’s overall carbon transformation goals.