The conclusion of the article tells it all: It’s time to remember that advertising needs brands more than the brands need advertising. A good product creates its own relationships.

Understanding what the consumers want and bringing solutions that will inspire them is the most powerful way to support any business strategy. Putting consumers and the product at the center of the equation is fundamental to a brand’s success. Design then becomes the message and the advertising, as it’s proof of a company’s commitment to people and to innovation.
In an emotional economy, success is judged by a profound and indelible connection with people through sensory experiences. The challenge for CEOs, CMOs, and clients the world over is to remember what’s at the soul of their brand: the credibility of a well-respected product and the passion of the culture behind it. Design is the expression of that culture and the link that will cause people to be irresistibly drawn to the brand. If your brand doesn’t connect emotionally, you will have to rely on media or advertising hype, a short-term and risky proposition.

By forgetting to focus on the way your product will be experienced, and failing to respond to people’s need to be stimulated, you fail their expectations. No amount of money can buy the media to fix a boring product, no PR message will work once you lose that trust. The best brands of all jam with their consumers to invent and imagine ideas designed for the future—ideas designed to revive the advertising impact and exponentially maximize your communication dollars.

Read full article here.

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Brand value is calculated as the net present value of the earnings the brand is expected to generate and secure in the future for the time frame from July 1, 2005 to June 30, 2006. To be considered the brands must have a minimum brand value of US$2.7 billion, achieve about one third of their earnings outside of their home country, have publicly available marketing and financial data, and have a wider public profile beyond their direct customer base.

Here is the list with 2006 top 10 standings:
Rank Brand Brand Value ($m)
1(1) Coca-Cola 67,000
2(2) Microsoft 56,927
3(3) IBM 56,201
4(4) GE 48,907
5(5) Intel 32,319
6(6) Nokia 30,131
7(9) Toyota 27,941
8(7) Disney 27,848
9(8) McDonald’s 27,501
10(11)Mercedes 21,795

Top Gainers
The top gainer with a brand value increase of 46%, Google (#24) creates growth under with the strategy of “do no evil” positioning itself at the opposite end of the spectrum from the more corporate Microsoft. Overall growth of Internet commerce has perpetuated consumers’ acceptance of purchasing goods and services online enabling eBay (#47) to skyrocket in value up 18% and the third highest gainer this year.

In the second spot with a value increase of 20%, Starbucks (#91) has found financial success by leveraging the brand with a premium fast food and extending its product offering into music and publishing.

Top Decliners
The growth of mass retailers has taken market share from traditional apparel brands such as Gap (#52). Losing the most brand value with a decline of -22%, Gap has been unable to clarify its brand image and with a less distinct positioning the brand has been less effective at selling clothing causing reduced long-term stability.

Ford (#30) continues to lose money on every car sold – and brand value year after year. Down -16% this year, Ford’s American heritage is an insufficient brand attribute to hold off growing competition from Japanese and German automakers.

Down -12% this year, Kodak (#70) has made valiant strides to catch up with the digital world, however the reality is that competition is fierce and profitability is thin compared to Kodak’s film business and thus the brand’s value continues to decline.

Last year Best Global Brands by Value for 2005

Further readings on this:
Interbrand’s press release

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