Sweden’s marketing paradox: leaders downplay what they secretly depend on

In Swedish boardrooms, a puzzling contradiction prevails. Business leaders often dismiss marketing, PR, and communications as secondary, yet behind the scenes, they either try to handle these functions themselves — inefficiently — or invest heavily while continuing to downplay their importance.

The result? Wasted resources, missed opportunities, and a failure to fully leverage the very tools they quietly depend on.

A recent report by Ocean Tomo, a firm specializing in intangible assets, adds critical context to this paradox. In 1975, the market value of companies in the S&P 500 was largely tied to tangible assets, which made up 83% of their value. By 2020, this ratio had almost completely inverted, with 90% of their value tied to intangible assets — such as intellectual property, brand equity, and reputation — compared to just 10% in tangible assets. The shift between 1995 and 2020 alone saw intangible assets rise from 68% to 90%.

This shift underscores the importance of marketing and communications in today’s economy. Brands, reputation, and intellectual capital are central to a company’s value—yet Swedish leaders, despite seeing the growing dominance of intangible assets, continue to treat marketing as an afterthought.

Some leaders are convinced by peers that marketing doesn’t matter, only to realize its importance after poorly managed DIY efforts. Others fully understand its impact but continue to downplay it, perhaps to maintain an air of cost-consciousness. Both approaches lead to inefficiency, wasted time, and a diluted brand presence.

In an era where intangible assets are king, Swedish businesses can no longer afford to sideline marketing. A strong communications strategy isn’t a luxury — it’s a necessity for sustaining value in a world where reputation and intellectual capital drive market success.

The sooner Sweden’s leaders stop undermining the role of marketing, the more competitive they’ll become in the global marketplace.