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CommBank, which topped the Kantar BrandZ Australia ranking for the eighth year in a row, is the only Australian brand in the Top 100 Most Valuable Global Brands.
This performance is a standout. Most other Australian brands can’t lift their value above that, as determined by pure financial measures such as stock market performance.
A key to brand value is creativity and Kantar’s head of brand strategy, Ryan France, told AdNews that Australian brands need to be bolder.
Australian businesses often operate in oligopolies and duopolies, characterised by significant market power and limited competition. This leads to a reduced need to stand out to Australian buyers.
“If you're not battling competitively, there is less of a need to create meaning in consumers' minds, because their choices are forced, so it can weaken our reliance on the need to differentiate,” France said.
“And that breaks down a little if the barriers start to evaporate. Overseas competitors may have a look at us and go, you know what? Maybe we could compete in that environment.
“So, if some of the things that insulate you start to break down, then you're at slightly greater risk than if you had stronger brands that consumers go to not because they must, but because they want to.”
Kantar analyses the top 40 Australian brands in terms of brand value. This is determined by financial value, financial contribution and multiplied by a brand contribution.
“The top brand growth rate around the world outperforms the stock market. In Australia, we perform in line with the stock market, which means it's more driven by financial contribution than it is actual brand contribution,” France said.
Since 2019, Australia has grown to 61% which is below the global average of 80%.
Last year, CommBank released an 8-part television series, The Brighter Side, which provided financial support for Australians.
CommBank CMO Jo Boundy announced at the Kantar Ignite conference that there is a second season in the works.
France said that CommBank’s success is through their distinctive marketing and innovative services.
“Being the biggest brand in a mature category, you often don't get huge movement on those metrics, but they've done something.
“They haven't let Neo banks come and do all the innovation, they have been progressing with technology and innovative services.
“Their advertising is distinctive. You can recognise CommBank advertising more easily than you can for the rest of the financial services category books.
"If you took out the logo, you might not know which brand it is, but with CommBank, you know exactly what brand it is."
Banks in Australia exceed oligopoly, where there are several banks competing for potential buyers. This means that CommBank is required to take risks to stand out in the market.
Kantar head of creative, Irene Joshy, said the competition helps brands cater to the needs of the customer.
“When competition comes in, you ace your game and you cater to people's needs much more. It's great for the consumer,” Joshy said.
Seventy per cent of all content in Australia is perceived to be enjoyable by consumers, but only 30% is persuasive, according to Kantar Creative Insight.
Joshy said that part of brand innovation is creating a culture behind the brand.
“When you look at 95% of the assets that come through our doorway, there is one big problem. They are not owned by the brand.
“When you ask consumers to recognise a brand, they think it could be for any brand in that category of product. Which is not persuasive.
“Less than 50% are meaningful. Less than 50% are different. We have forgotten the love affair that we used to have with ideas.
“If you want to be bold, you need to step back and not look at your category or your brand alone. You need to look at life and think about what the world would be without you.
“That's the power of a brand, but we never leverage it, because we try to keep a transaction.
“A lot of people think, 'Oh, my God, I'm a global brand. I can't do these things.' You can. You can participate in local culture and become part of the cultural fabric. You just need the right idea.”
France said that brands need to look overseas for ideas and brands that are doing well in Australia to achieve innovative success.
“The business would be more future proof if people went there with new ideas because they wanted to, not because they had to.
“When there are tough times, the stronger brands recover quicker.
"So even if you are a monopoly, you can deliver value on a consistent basis.”
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