Feb 9, 2007

Google's Brand Name

Coca-Cola is traditionally considered the world's most valuable brand, and has been estimated by Interbrand to be worth $67.5 billion, which is about 60% of Coke's market capitalization (total worth as a company). But is Google's brand even more valuable?

Google has a market capitalization of $144 billion. According to Internet Outsider most people use Google search not because it is better but rather because its name "has become synonymous with search." If this is really true then perhaps most of Google's worth is really due to its brand, meaning that Google's brand name is more valuable than Coke's.

Because of the high rate of change of Internet technology, I suspect that Internet brand names have less durability than do the brand names of "timeless" products such as Coke. Consequently, if much of Google's market capitalization really does come from its brand name then Google's shareholders should worry.