International Organization for Standardization’s brand evaluator

Marketing Magazine reports:

Superbrands, Interbrand and WPP with its BrandZ list are among the companies that are into brand valuation.

The latest effort, headed up by the International Organization for Standardization, differs, as it comes from an internationally respected organisation outside of the marketing industry.

The draft standard specifies three approaches to brand valuation. The first is the income approach, which measures the value of the brand by reference to the present value of its economic benefits. The others are based on what other purchasers in the market have paid for similar assets and the value of the brand based on the cost invested in it.

Brand evaluation specialists have greeted the news with mixed views. Stephen Cheliotis, CEO of The Centre of Brand Analysis and Chairman, Superbrands Council, believes it to be too subjective an area for the ISO to become involved in.
David Haigh, CEO of valuation consultancy Brand Finance, welcomed the standard as an attempt to 'create a consensus on how brands should be valued'.

‘‘Brands are the largest single source of intangible assets, yet historically, brand valuation has been viewed as opaque, subjective and unreliable -- and a bit of a black art,’' he says.