Another door opens on our BrainJuicer Advent Calendar of Experiments…
The Experiment: A very simple one, this. For the last several years we’ve been running emotional tracking for the Brands Of British Origin league table, run by Brand Finance. The BOBOs estimate the brand value of British brands, and our work helps clarify the role emotion pays in building that value.
“My fortune was made – through emotion!”
With three years of data under our belts, we decided it was time to look at another definition of value – the stock market performance of these brands. We took the 30 or so brands which were included in the FTSE100 and looked at their share performance for the year after we conducted fieldwork – in other words, we wanted to see if emotional data had any predictive value in financial terms.
What did we find? The Results: The results were exciting. While individual brands rose and fell financially, when we organised our brands into portfolios – according to how well they scored on our Emotion-into-Action measure – we found a more interesting story.
The top third of brands (measured on EiA) outperformed the stock market by 6% per annum on average. The lowest third of brands underperformed the market by 7%. Translated into real financial terms – given a starting stake of £1000 – the “top” portfolio would have provided you with almost £800 more in returns than the “bottom” one.
We’re continuing with our BOBOs tracking and running similar analyses in other countries to see how well emotion reflects the market there. While we’re not claiming to have found the secret to wealth, it makes sense to us that the public reward the brands which make them happy – and that leads to stock market prosperity too.
To find out more about emotional measurement, read Orlando Wood on emotional advertising.