The Influence Of Social Media In Brand Value

Tina Louise

Tina Louise,
Senior Consultant, Digital Strategy,
Interbrand

Each year social media continues to grow more integral to a brand’s ongoing strength and value. That’s why, when Interbrand updated its Best Global Brands Brand Strength Score in 2010, we made sure that social media was a key component when measuring a brand’s value.

Whether a consumer-facing or B2B brand, it is essential to be listening to the conversations happening online and engaging with consumers as necessary. Social tools should be built into all channels and forms of communication, but always follow the larger business and brand strategy.

Take Starbucks. The brand faced a tough 2009, but has since seen a two percent increase in brand value in 2010’s Best Global Brands. The brand has worked hard to create an engaging and positive online presence around the dialogue it builds with customers on YouTube, Twitter, Facebook, mobile and its blog. It has representatives in every department that quickly and pro-actively react to what’s happening online. Ranking 17th in Yomego’s Top 50 Social Media League Table it is clear that Starbucks’ efforts are improving brand perceptions and allowing them create deeper connections with customers.

Still, while Starbucks’ efforts have clearly boosted the brand’s customer perception, it is clear the importance of a strong brand when building value – hence Starbucks’ Best Global Brands rank of 97 in overall brand value versus 17 for social media only. This means that brand managers also need to be thinking about how their brand story is developed, how to continually evolve products and services, and how to empower employees internally. In the end, there’s no such thing as a social media strategy – social media needs to be an integral part of the way an organisation operates, integrating each and every component of a brand.