Zoom and Instagram brand values jump as tech firms get Covid-19 boost
Zoom, Instagram and Youtube have all swept into the rankings of the world’s 100 most valuable brands for the first time this year as the pandemic sparked a major boost for tech companies.
Social media and streaming companies have enjoyed booming demand as millions of people have been forced to stay at home during the outbreak of coronavirus.
Zoom, which has enjoyed a surge in daily users amid a shift to home working, entered the big leagues with a brand valuation of $4.5bn (£3.5bn).
Instagram was catapulted into 19th place with a valuation of $26.1bn, while Youtube — home to fitness guru Joe Wicks — entered in 30th position at $17.3bn.
Tech titans rule the roost
While the pandemic helped bring new brands into the fold, Amazon was the biggest winner in this year’s rankings.
The ecommerce giant moved up into second position and saw its valuation soar 60 per cent year on year to $201bn as shoppers were forced to stay away from the high street.
By contrast, most retailers suffered a decline in brand value after months of store closures. Zara and H&M fell 13 per cent and 14 per cent respectively.
After two years as the top growing sector, luxury brands also took a hit in 2020, with all but one brand — Hermes — slipping in value.
Overall, tech companies dominated the top 10, with Apple retaining the top spot at $323bn. Microsoft overtook Google to enter the top three after its valuation jumped 53 per cent.
Tesla, which has seen its share price soar over the year, also re-entered the table for the first time since 2017.
Tech firms were the key driver of growth for this year’s rankings, with the combined value for all 100 brands rising nine per cent to $2.3 trillion.
On average, tech brands saw their value rise by a fifth this year, while tech companies now represent 48 per cent of the total table value — up from just 17 per cent a decade ago.
“In 2020, technology brands have become even stronger as a result of the Covid effect, which has further accelerated the already frenetic pace of digital change,” said Christian Purser, chief executive of Interbrand London, which compiled the rankings.
“The new technology entrants, Instagram, YouTube and Zoom mirror the fractured nature of our lives under Covid, in which we see huge uptake of brands that are designed to connect us.”
Full stream ahead
As the pandemic left millions of people cooped up at home, streaming companies have also cashed in on increased demand.
Binge-friendly Netflix bagged a 41 per cent increase in brand value to $12.7bn, while Spotify jumped 22 places in the ranking at $8.4bn.
The companies’ success is in part down to their subscription-based business models. Almost two-thirds of double-digit risers in this year’s table generate significant revenue from subscriptions.
However, the benefits were not enjoyed by US media giant Disney, which launched its Disney Plus streaming service as lockdown hit the UK in March.
The company retained 10th position but saw its brand valuation slip eight per cent to $40.8bn.
While Disney has seen rapid growth in its streaming division, this has been offset by the forced closure of its theme parks and cancellation of cruises.
Other winners from the pandemic were payment firms Paypal, Visa and Mastercard, which all climbed up the rankings thanks to an increase in online shopping and contactless payments.
Mastercard chief marketing officer Raja Rajamannar said the rankings were “important for companies to better understand how we’re being perceived in consumers’ hearts and minds”.
“Especially during these unprecedented times, when consumer behaviours have shifted and trust is more important than ever, these rankings are a way for us to better understand how we can best serve our communities.”