If I asked most people what brand is all about, I’d probably hear something about logos, value propositions, visual identity or tone.
None of them wrong. But they miss something more fundamental.
A strong brand reduces perceived risk. Which is a hefty value driver itself.
For customers – that means a safer choice. Where paying a premium feels justified and staying long term feels like a no-brainer.
For investors – where revenue looks more predictable, market position is more defensible, and future earnings less exposed to headwinds.
Adobe is a useful example here.
In the early 2010s, Adobe moved from boxed software to Creative Cloud subscriptions.
Recurring revenue replaced one-off licence sales. But something else shifted too. Adobe stopped being a design software vendor and became critical creative infrastructure.
For customers, switching became operationally painful, and a steady stream of updates kept it fresh.
For investors, earnings became more stable and repeatable.
Over the following years, revenue scaled, predictability improved, and the share price increased more than fivefold.
While brand alone doesn’t determine valuation – it can have a large bearing on how risky the future looks
And valuation multiples are, at their core, a pricing of risk.
By Dave Heywood
A marketer who’s spent his career figuring out how real growth happens – for brands and people alike. He runs Marketing Careers Uncovered, a podcast where marketers talk honestly about the work, the missteps, and what actually moves the needle.
