TikTok has overtaken Facebook as the world’s most valuable social media brand, jumping eight places in Brand Finance’s annual Global 500 report.
Brand Finance’s annual report tanks companies for their brand value and, this year, TikTok and its Chinese counterpart Douyin were valued at US$65.7 billion (around AU$94.25 billion) and joined the top 10 most valuable brands in the world — representing an 11 per cent year-on-year growth.
Facebook, meanwhile, fell from seventh in the list last year and saw its value almost half from more than US$100 billion last year to just US$58.8 billion. It even fell behind US retailer Home Depot.
Brand Finance’s global list ranks “brand value,” which measures how much of a company’s profits are attributable to its brand. Its ratings are often used in mergers and acquisitions to measure the intangible assets that a company owns.
“The main issue for Facebook is its revenue declined for a second consecutive quarter in 2022, due to falling advertising sales as it faces competition from TikTok,” Brand Finance Australia’s managing director, Mark Crowe, said.
However, Crowe said that Facebook maintained good “brand strength.”
Amazon and Apple maintained their positions as the world’s most valuable brands, being rated at US299.e billion and US$297.5 billion, respectively. However this represented a -15 per cent year-on-year decline for Amazon and a -16 per cent year-on-year drop for Apple.
Google, on the other hand, saw its value jump by 7 per cent to to US$281.4 billion to round out the top three. Tesla saw the greatest increase in value of any top 10 company, seeing a 44 per cent boost in value to US$66.2 billion.
Woolworths was the top Australian brand on the list. Telstra, Commonwealth Bank, Coles, NAB, BHP, and ANZ were also flying the flag for Aussie businesses in the top 500.
