The most valuable brands in the world

The most valuable brand in the world, according to WPP PLC's Millward Brown, is Apple Inc., worth $183 billion—nearly a third of the company's market capitalization of $581 billion. Omnicom Group Inc.'s Interbrand, however, judges Apple's brand as worth only $33.5 billion, or eighth, behind such names as Microsoft Corp. (ranked third at $59 billion), International Business Machines Corp. IBM -0.31% and Coca-Cola Co. (first at $71.9 billion). Interbrand notes its estimate of Apple's brand value has risen. The two firms had less disagreement on IKEA's brand—both reasonably close to the company's number. Interbrand values it at $11.9 billion, or the 31st most valuable brand in the world. Millward Brown put value at $9.2 billion, or 89th.

"The value of brand is both art and science," says Allen Adamson, a managing director of Landor Associates, a branding firm owned by WPP. "It's simple in theory but hard to pin down in reality. It's really about how much would a consumer pay for a caramel colored soda versus how much they would pay for a Coke."

Brand research firms use numerous methods to calculate the number. Interbrand, for instance, employs a formula that uses a company's financial performance and its five-year business forecasts as well as consumer surveys. The firm says it does online surveys of thousands of consumers as well as assessments made by its experts. It also compares the brand's strength against other brands.

Millward Brown also has a lengthy process, including two million online and face-to-face surveys a year in more than 30 countries around the world. In any given year, the company polls consumers on about 8,000 brands, the company said.

"For us it's science, we have a model that relies on consumer research and statistical analysis," said Anastasia A. Kourovskaia, a vice president with Millward Brown.