A global study reveals that regardless of the Covid-19 pandemic wiping off US$22 trnl off company valuations worldwide in Q1 of 2020, companies worldwide have bounced back and have the power to fuel an economic recovery.

The ‘Why brands matter 2020 report’ from Brand Finance published in partnership with the International Advertising Association (IAA) reveals that since the outbreak of the pandemic, the total value of intangible assets of publicly listed companies hit an all time high in September, recording a 69% increase from April.

Branded companies that convey trust to consumers, like Apple, Amazon, Tesla and Visa have bounced back from the decline caused by the Covid-19 crisis to record growth of 3.8%. The research also highlights that brands are among the most valuable assets in a company, accounting for around 20% of total business value.

“In times of crisis brands become a safe-haven for capital. Like gold or fine art during past economic downturns, nowadays well-managed, innovative and reputable brans are what the global economy turns in the hour of need,” says CEO of Brand Finance, David Haigh.

As a result of the findings, IAA has launched a global multichannel campaign ‘Why Brands Matter,’ which calls out governments and brand owners to create an environment that gives consumers the trust to invest in brands that matter to them.

“Brand communicate the origin, quality and authenticity of a product, but they also convey trust, identity, pride, passion, creativity, innovation and optimism. Strong brands restore consumer confidence and brand competition can rebuild economic strength,” says managing director of IAA Dagmara Szulce.