LEGO named world's most powerful brand by Global 500 rankings [News]

Google secured the top spot after a 24% yearly increase saw the brand valued at $109 billion, according to the Brand Finance Global 500 list.

Last year's leader, Walt Disney fell five places due to its biggest films last year being the work of sub-brands, such as Star Wars: Rogue One, which was produced by Lucasfilm, and Finding Dory, which was produced by Pixar.

"We expect more brands from the Middle East to enter our Global 500 in time as oil prices readjust and companies from the region continue to expand into new geographic markets".

Google's brand value rose by 24 per cent in 2016 from $US88.2 billion to $US109.5 billion, while Apple's declined from $US145.9 billion to $US107.1 billion.

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The results of this analysis are ranked, with the world's 500 most valuable brands featured in the Brand Finance Global 500.

While the global top 10 is also tough to break, it's dominated by many companies that didn't exist two decades ago, such as the world's most valuable brand Google, and Facebook.

"Google remains largely unchallenged in its core search business, which is the mainstay of its advertising income".

A lack of innovation in the Apple pipeline is one reason Brand Finance says Apple slipped from the top spot.

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Sales from Amazon's first- and third-party sales, Amazon.com and Prime Now represented 43% of all revenue generated in the US online market during 2016, according to the latest data from Slice Intelligence.

"Apple has struggled to maintain its technological advantage, with new iterations of the iPhone delivering diminishing returns, while the Chinese market is now crowded with local competitors", David Haigh, CEO of Brand Finance, said in a statement. They don't go on to explain exactly what Apple did to exploit customers though. "Gradually goodwill towards American brands has been eroded", he said.

To determine a brand's value, Brand Finance evaluates factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation to determine the "strength" or "power" of a brand.

The annual ranking from this valuation and strategy consultancy ranks brands by monetary value and calculates the most "powerful" brands, as defined by the companies whose enterprise value is most positively impacted by the strength of their brand.

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