Why do People Spend Millions on a Logo?

10 years ago

I would imagine that the majority of the cost is not for somebody sitting in front of a computer producing the design!!. The cost will go into consultancy and a huge amount into market research to gauge the public perception and impact on their brand from changing a logo. Making a wrong choice could have massive repercussions for big companies like these, costing them far more than the investments

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logoonlinepros1

10 years ago

Originally Posted by copymyideas

I would imagine that the majority of the cost is not for somebody sitting in front of a computer producing the design!!. The cost will go into consultancy and a huge amount into market research to gauge the public perception and impact on their brand from changing a logo. Making a wrong choice could have massive repercussions for big companies like these, costing them far more than the investments

Here are some examples of other brands that you may recognize and the price tag of their logos.
Nike spent only $35 for its logo in 1971
Twitter paid only $15 for its original design
Google did not pay a single cent for its original logo in 1998 Neither did Coca Cola

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JakeRhodes 10 years ago

Most of the time it is the market research.

Sometimes though I suspect it might be a way for upper management to give friends high-paying jobs and slide their company into a lower tax bracket for the year.
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- pphillips001 10 years ago
  
  I daresay there is also an element of sending a message to their competitors.
  
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Anne Laidlaw

10 years ago

Yeh most of the money goes into market research. They test hundreds of logos before they hit the jackpot.

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sbucciarel

Banned 10 years ago

They don't spend millions on designing a logo. They spend millions on creating a brand. The logo design carries through all of their marketing materials, stationery, advertisements, etc. The designers are experts in branding and the logo isn't the only creative they deliver.

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Tom Evans

10 years ago

Originally Posted by sbucciarel

They don't spend millions on designing a logo. They spend millions on creating a brand. The logo design carries through all of their marketing materials, stationery, advertisements, etc. The designers are experts in branding and the logo isn't the only creative they deliver.

Yea, exactly! They spent it only for branding. Your logo is the face to represent your brand /company. It describes everything about your company. It's just not a logo to be designed by the designers but it is a symbol or identity of your company products/services.

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amcg

10 years ago

Originally Posted by sbucciarel

They don't spend millions on designing a logo. They spend millions on creating a brand. The logo design carries through all of their marketing materials, stationery, advertisements, etc. The designers are experts in branding and the logo isn't the only creative they deliver.

This. Companies, particularly the biggest and most successful ones, are where they are in part because of brand. It's what separates them from the rest; the reason why people buy their products versus others. Like any marketing expense, brand is subjective yet very important.

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getbestdesign

10 years ago

Yeah i agree, they spend million on a brand not in a logo design, a brand that can instill into the peoples mind...

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HA-Dave

10 years ago

Branding, Branding .... it is kind of crazy these numbers though.. like for bp, would a logo that was 100m less expensive have made a difference? Crazy...

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GforceSage

10 years ago

When a person or corporation has "Funny Money," they get approached by slick marketers who realize they can get a nice piece of that pie if they can generate a great looking Logo and create a buzz for the brand at hand. Those with the checkbook may feel the new look brings a new energy to the brand that is priceless and since they are used to spending big bucks on advertising anyway, they don't bat an eye on Logo/Brand fortification costs if the perceived value is high.

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Fajar Sidiq

10 years ago

yes because they think it's for imaging very important. and the price of the logo is so expensive, maybe they could make more money with a brand that they have

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january14n

10 years ago

I think this includes the research that was dedicated for the logo.

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Nauman K

10 years ago

I think they don't spend money just for the logo, there is a concept behind each logo. The concept is important. And I also agree with that they spent most of their money on the research that was dedicated for the logo.

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logoonlinepros1 10 years ago

Originally Posted by Nauman K

I think they don't spend money just for the logo, there is a concept behind each logo.

Well, could you please tell us the concept behind the BBC logo?
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ST x

10 years ago

Image is a powerful thing.

We have all heard the classic line: we are judged within the first 3 seconds.

Edit:

Also, for those that are interested in this sort of thing: there is a lot of interesting craftsmanship which goes into some of these designs as well - do an online search for "the golden ratio" or "fibbonaci sequence" and look at it's uses within popular designs, it is very inteiging to say the least

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cpgiveaway1

10 years ago

I guess branding is very important to them? Normally I just hire a designer on freelancer.com to create a logo for me. Costs around 100 dollars and every time I've been satisfied.

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rlhurst

10 years ago

Why do they spend millions?... maybe they haven't heard of Fiverr!

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Mantox2013

10 years ago

In return for such an expensive investment , Is More Money!!!

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Rick Rodd

10 years ago

I guess much of the research goes into research. Whether the logo change would be unique and how that change would affect the brand in whole.

For those who are not aware, Google changed their logo too, recently (Not talking about the doodles here):

Google Changed Its Logo This Weekend and You Didn't Even Notice

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