DeepSummary
The episode features an interview with Greg Silverman, Global Director of Brand Economics at Interbrand. He discusses a major study conducted by Interbrand on how brands influence share price. The study found that while 75% of analysts consider brand important in valuation, 90% admitted they don't understand how to properly value brands. This leads to an estimated two-thirds of brands in the S&P 500 being inaccurately valued.
Greg explains that strong brands have a culture that respects the brand, processes that reinforce it, and the expertise to evaluate it. However, there is a disconnect between communicating brand strategy to consumers and conveying its value to the investment community. He advises marketers to collaborate with investor relations, provide quantifiable metrics, and draw a connection between brand investments and financial results.
Greg shares practical tips for marketers to improve brand valuation, such as conducting internal surveys, incorporating brand narratives in earnings calls, and researching how analysts perceive their brand. He emphasizes the importance of marketers understanding finance and speaking the language of investors to gain credibility in the C-suite and boardroom.
Key Episodes Takeaways
- A significant portion of financial analysts recognize the importance of brand in valuation, yet lack understanding of how to properly evaluate brand value.
- This knowledge gap has led to widespread brand undervaluation, with an estimated two-thirds of S&P 500 brands being inaccurately valued.
- Marketers need to quantify brand investments, brand strength metrics, and their connection to revenue performance to build credible 'brand value' narratives.
- Collaborating with investor relations and incorporating brand narratives in earnings communications can help bridge the valuation gap.
- Building financial literacy and speaking the language of investors is crucial for marketers to gain credibility in the C-suite and boardroom.
- Conducting internal brand impact surveys and qualitative research with analysts can provide insights into brand perception gaps.
- Strong brands have a culture respecting the brand, processes reinforcing it, and the expertise to evaluate brand performance.
- Improving brand valuation understanding represents a significant opportunity for marketers to demonstrate effectiveness and impact share price.
Top Episodes Quotes
- βShockingly, 90% of them said when we asked them the question, I really don't understand brand and how it works, 90%. So that is dramatic.β by Greg Silverman
- βI think for marketers trying to get budget and credibility in the C suite and the boardroom, having that ability to talk to the community, understand the mechanics of it is a big opportunity to be seen as more effective.β by Greg Silverman
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Episode Information
CMO Confidential
Mike Linton // I Hear Everything Podcast Network
6/25/24
A CMO Confidential Interview with Greg Silverman, the Interbrand Global Director, Brand Economics who also founded Concentric, a sales forecasting company. Greg discusses a recent Interbrand study with Wall Street analysts on how brands influence share price in which 75% of analysts look at brand power as a key variable though nearly all admit they don't understand it. Key topics include: why marketers should meet with analysts and get close to their Investment Relations team; how getting your brand value understood is the best way to increase stock price; and his belief that many CFOs are "indirectly running marketing because marketers are not making the business case for marketing investments." Tune in to hear how a "Dysfunctional Diode" is blocking brand valuation and what to do about it.
π Welcome to another insightful episode of CMO Confidential, where we unlock the insider secrets of how brands influence share price! Join our host, Mike Linton, a 5-time CMO, as he delves into the fascinating world of marketing valuation with his esteemed guest, Greg Silverman. Greg, the Founder of Concentric and Global Managing Director at Interbrand, brings a wealth of experience in analytics and forecasting to the table.
Key topics include:
- A deep dive into Interbrandβs extensive study on the financial value of brands.
- The critical role of brand valuation in influencing share price.
- Insights from over 250 analysts, investors, and journalists.
- The major disconnect between brand strategy communication and the investment community.
- Practical steps for marketers to improve brand valuation and impact share price.
Tune in to hear Greg's expert analysis on how brands can better communicate their value to the investment community and the surprising findings from their research. This episode is packed with actionable insights that can help you elevate your marketing game and ensure your brand gets the recognition it deserves in the financial markets.
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Hey all you marketers, stay safe out there! π
#BrandCommunication #MarketingDecisions #FinancialAnalysts #MarketingImpact #MarketingRoi
CHAPTERS:
0:00 - Intro
1:35 - Overview of the study
4:58 - What did the study say
7:35 - What makes a strong brand
11:04 - Best practices for talking about the brand
14:33 - Does marketing matter
17:46 - What should marketers do with this information
19:14 - What should marketers do now
21:22 - How to Interview for a Marketing Job
24:33 - What to Do with Investor Relations
26:06 - Last Question
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