TikTok has been named the world’s fastest-growing brand by a new report published today. With an impressive 215% growth, the entertainment app’s brand value has increased from US$18.7 billion in 2021 to US$59.0 billion this year. Claiming 18th spot among the world’s top 500 most valuable brands, it is the highest new entrant to the Brand Finance Global 500 2022 ranking.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The world’s top 500 most valuable and strongest brands are included in the annual Brand Finance Global 500 ranking – now in its 16th year.
With COVID-19 restrictions still in effect across the globe throughout 2021, digital entertainment, social media, and streaming services saw continued growth, and TikTok’s rise is testament to how media consumption is changing. With its offering of easily digestible and entertaining content, the app’s popularity spread across the globe, however, it also acted as a creative outlet and provided a way for people to connect during lockdown.
At the same time, strategic partnerships, such as its sponsorship of the UEFA Euro 2020 tournament, exposed TikTok to demographics outside of its original Gen Z base. It crossed the one billion user mark in 2021 and became the most downloaded app across Android’s Google Play store and Apple’s App Store.
David Haigh, chairman & CEO of Brand Finance, commented: “Media consumption has increased throughout the COVID-19 pandemic, but – what is more – the way we consume it has irrevocably changed. In order to compete in this evolving marketplace, media organizations have invested heavily in their brands – from content acquisition through to user experience. TikTok’s meteoric growth is the proof in the pudding – the brand has gone from relative obscurity to internationally renowned in just a few years and shows no signs of slowing down.”
New media brands growing quickly
Overall, media brands account for the top 3 fastest-growing brands in the ranking – with another social media app Snapchat (brand value up 184% to US$6.6 billion) and South Korean internet brand Kakao (up 161% to US$4.7 billion) following closely behind TikTok.
Other notable performers from the media sector include those that offer streaming services, with Disney (brand value up 11% to US$57.0 billion), Netflix (brand value up 18% to US$29.4 billion), YouTube (brand value up 38% to US$23.9 billion) billion), and Spotify (brand value up 13% to US$6.3 billion) all seeing increases.
Traditional media brands not so much
In stark contrast, traditional media brands have seen a continued decline, with people favoring social media platforms and on-demand streaming in their place. Warner Bros is among the fastest-falling brands in the ranking this year (brand value down 33% to US$6.8 billion), and this trend is even more apparent when comparing this year with pre-pandemic valuations. Looking at brand value change over the last two years of COVID-19, three media brands feature among the five fastest-falling brands – Warner Bros. saw the biggest brand value loss at 40%, with NBC (brand value US$9.4 billion) and CBS (brand value US$7.4 billion) seeing losses of 38% and 36% respectively.
Brand Finance: Most valuable brands
Apple has retained the title of the world’s most valuable brand following a 35% increase to US$355.1 billion – the highest brand value ever recorded in the Brand Finance Global 500 ranking.
The tech sector is once again the most valuable in the Brand Finance Global 500 ranking, with a cumulative brand value of close to US$1.3 trillion. Technology and tech brands have become of ever-increasing importance in the modern world, a trend that has only been exacerbated by the COVID-19 pandemic.
In total, 50 tech brands feature in the ranking, however, the brand value is largely attributable to three big players, with Apple, Microsoft (brand value US$184.2 billion), and Samsung Group (brand value US$107.3 billion) together accounting for more than 50% of the total brand value in the sector.
WeChat world’s strongest brand
WeChat remains the world’s strongest brand, retaining the title for the second consecutive year, with a Brand Strength Index (BSI) score of 93.3 out of 100 and a corresponding AAA+ rating.