Is the Brand Bubble About to Burst?

Photo by munkt0n on Flickr.com, (cc) some rights reserved. Wall Street values brands far more than consumers do, according to a well-researched article by John Gerzema and Ed Lebar in this summer’s edition of Strategy + Business.

In fact, the authors believe that the gap between real brand value and perceived brand value is widening, creating a “recipe for disaster.”

Gerzema and Lebar argue that we live in such a brand-saturated world that only a handful of truly “energized brands” (Google, iPhone, Axe and the usual suspects) really matter to consumers any more.

That expression needs work, but the theory may be spot on. In fact, a recent study conducted by the Pointer Media Network shows that consumer brand loyalty has deteriorated alarmingly, with many brands losing half or more of their most loyal customers over the past two years.

That’s should be a big red flag for Wall Street—and for marketing agencies, too. There’s more to branding than aligning your touchpoints. (Ho, hum.) To create brand equity, you have to generate brand energy.