With Twitter being the latest high-profile corporate to rebrand, announcing new logo ‘X’ to a panning from many users at the weekend, we take a closer look at rebrands and if they’re worth the money.
A rebrand can cost anything from a few thousand pounds up to tens’, even hundreds of millions and the cost can vary significantly depending on the scale of the company, the complexity of the rebrand, and the marketing and advertising strategies involved.
In October 2021, social media giant Facebook rebranded its corporate name to Meta. But just a month later, a report from syndicated brand tracker, Harris Brand Platform, revealed that public trust in Meta had dropped 5%.
Facebook’s trustworthy score had already begun to fall, from 16% after The Wall Street Journal‘s “Facebook Files” series on various revelations—including how the company knew Instagram was “toxic” for teens—and hit a low of 5.8% during the week of the Congressional hearings and testimony of whistle-blower Frances Haugen, reported Fast Company.
That marked Facebook’s lowest score since the start of the pandemic. There was a brief bounce back up to 11%, but then as Facebook announced its rebrand to Meta, the trustworthy score once again dipped to 6.2%.
With ambitions of a Metaverse takeover in clear sight, Meta CEO and co-founder Mark Zuckerberg was destined to be at the forefront of change in the tech world…or maybe not. Talk of the Metaverse has quietened down this year, with AI and Generative AI being the newest hype to take the world by storm, and Meta’s ‘innovative’ rebrand is looking decidedly out of touch.
It has been a costly mistake too, with Meta reportedly losing over $500bn in market capitalisation just four months later, according to the New York Magazine.
MATT’S VIEW
“Major rebrands often happen in the big, corporate world to detract away from a problem [clearly the case with Facebook] or a shit product. Ultimately, if you build a great product, people will come. No matter how good your rebrand, it will get seen through pretty quickly if the product is shit.
We did a re-brand on one of our luxury fashion businesses, but did the customer know, was it really any different than it was before? That £50-100,000 we spent doing it could have been much better spent making that actual underlying product better. If you’ve got a great product, then it does its own marketing. The brand is almost irrelevant.
You need to think about the hidden costs when it comes to a rebrand, whether it’s changing the logo, re-doing the letterhead or the compliments slip. Even for the smallest company it can cost £5K, but as the company gets bigger, this number will go up astronomically.
You really need to ask yourself why you’re doing it, why the re-brand? I get a logo refresh, if the business has been around for 100 years, a logo in 1920 is going to be very different to a logo in 2020, but name changes like Facebook to Meta, or Twitter to X, ultimately what is trying to be achieved?”
WHAT’S BEEN THE WORLD’S MOST EXPENSIVE REBRAND?
One of the most expensive rebrands in history was the re-branding of BP (British Petroleum) in 2000. The company underwent a major rebranding effort that involved changing its logo, visual identity, and positioning. The rebranding was aimed at emphasising the company’s commitment to environmental sustainability and moving “Beyond Petroleum.”
BP’s rebranding campaign reportedly cost around $211m (£164m), which in today’s money would be a whole lot more. This included the cost of designing and implementing the new visual identity, marketing and advertising expenses, and communication efforts to promote the company’s new ‘green’ image.
IS A REBRAND WORTH THE MONEY?
If you’re looking at rebranding, whether you’re a small, limited company business or a massive global corporation, take this checklist and work out whether you really need to do it, or are you just papering over the cracks with resource, money and time best spent elsewhere?
BUSINESS GOALS
What are your business’s overall objectives and does a rebrand align with these goals? If a rebrand helps you achieve key objectives such as increasing market share, improving brand perception, or attracting a new target audience, it might be worth the investment.
POTENTIAL ROI
Analyse the potential return on investment (ROI) of the rebrand. This may not always be easy to quantify, but estimating how a rebrand could lead to increased revenue, customer loyalty, or cost savings is crucial.
COMPETITIVE LANDSCAPE
Analyse your competition and the branding strategies they are using. If your current brand is outdated or failing to differentiate you from competitors, a rebrand could be necessary to stay relevant and competitive.
CUSTOMER PERCEPTION
Understand how your current brand is perceived by your target audience. If your brand is associated with negative connotations or outdated values, a rebrand might be a way to improve public perception.
CHANGING MARKET TRENDS
Consider whether the market has evolved since your last branding effort. Consumer preferences, design trends, and industry standards can change, and a rebrand can help your business stay in tune with the times.
BRAND EQUITY
Assess the value of your current brand equity and determine if a rebrand would positively or negatively impact it. Rebranding can sometimes alienate loyal customers, so it’s crucial to manage this transition carefully.
LONG-TERM v SHORT-TERM
Consider the longevity of the rebrand. If you anticipate needing to rebrand again in a few years due to rapid changes in your business or market, it might be better to delay the process until you can make a more long-term investment.
BUDGET CONSTRAINTS
Evaluate your available resources and budget for a rebrand. It’s essential to strike a balance between investing enough to make a significant impact and not overextending your financial capabilities.
Rebranding can be a substantial investment, but also an essential part of growth and your ability to pivot and adapt to market changes.
Apple’s rebranding efforts in the late 1990s and early 2000s, which included a shift in focus and a new visual identity, played a significant role in transforming the company into a global technology leader and contributing to its increased profitability.
“People talk about technology, but Apple was a marketing company,” Apple CEO at the time John Sculley (a former president of drinks company PepsiCo) told the Guardian newspaper in 1997. “It was the marketing company of the decade.”
A successful rebrand can breathe new life into a company, particularly legacy and heritage brands, attracting new customers and revitalising the business.
But to ensure best use of resources, it’s critical to plan and prioritise the elements of the rebrand that will have the most significant impact on your business goals.
8 KEY FACTORS TO CONSIDER WHEN COSTING UP A REBRAND
1. BRAND STRATEGY & RESEARCH
This involves conducting market research, competitor analysis, and customer surveys to develop a solid brand strategy. Costs for this phase can range from a few thousand to tens of thousands of pounds.
2. LOGO & VISUAL IDENTITY DESIGN
Creating a new logo and visual identity elements, such as colour palettes, typography, and design guidelines, can cost anywhere from a few thousand to tens of thousands of pounds.
3. WEBSITE REDESIGN
If the rebrand includes updating the company website, the cost can vary depending on the complexity of the site and the extent of the redesign. Small businesses might spend a few hundred pounds, while larger companies could invest tens of thousands.
4. MARKETING COLLATERAL
Updating marketing materials, such as business cards, brochures, and signage, can add to the overall cost. Costs for this aspect can range from a few hundred to several thousand pounds.
5. DIGITAL MARKETING & ADVERTISING
If the rebrand involves launching new marketing campaigns, there will be additional costs for online advertising, social media promotion, and other digital marketing efforts.
6. INTERNAL IMPLEMENTATION
Implementing the rebrand internally, including updating uniforms, packaging, and internal communications, can add to the cost, especially for larger organisations.
7. EXTERNAL CONSULTANTS & AGENCIES
Hiring branding agencies or consultants can significantly impact the cost, as their expertise and services come with a price tag. Their fees can vary widely based on their reputation and experience.
8. LEGAL & TRADEMARKS
Registering trademarks for the new brand name and logo can add legal expenses to the rebranding cost and are all factors to consider.
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