Google is now officially the world’s most valuable brand according to an annual study by Brand Finance.
The annual report shows that Google’s value has increased to an impressive $109.5 billion by the end of 2016 which was a 24% increase year over year. That massive number pushed it past Apple whose value fell from $145.9 billion in 2015 to $107.1 billion in 2016. The study used earnings plus other factors like brand strength and underlying brand equity to rank each company accordingly. The rest of the list included many well know tech companies including Amazon at $106.4 billion, AT&T at $87 billion, Microsoft at $76.3 billion, Samsung at $66.2 billion, Verizon at $65.9 billion, Walmart at $62.2 billion, Facebook at $61.9 billion and rounding out the top ten was ICBC at $47.8 billion.
The report listed several reasons why Google has topped the list with the main reason being their core business of search advertising has maintained it’s dominance. Google has done a stellar job of adapting their advertising business as consumers moved away from desktop to mobile deceives. They’ve been able to quell concerns that Facebook and others were starting to take mobile advertising dollars away from Google. They have, but not to the extent that analyst were predicting. They also reported better than expected fourth quarter earnings that showed advertising and mobile advertising specifically is still carrying the load. They also revealed that their other bets like the Google Play store, the cloud business and hardware are making a serious impact. Hardware like the Google Pixel and Google Home are a huge success and analyst think this will further push Google beyond Apple. Apple has been somewhat stagnate and less innovate than Google recently and this new ranking shows that google is the worlds most valuable brand because of that.