Digital Marketers: The $5.9 billion Online Art Business is waving at you. Say Hello!
‘The knowledge of all things is possible’ — Leonardo da Vinci
One of the feted artists who had gifted the masterpiece ‘Mona Lisa’, the oil painting that attracts 8 million global visitors a year at Louvre, to the world, had also silently whispered his wisdom ‘knowledge of all things is possible’. Drawing upon his deep reflection, and also from my surreal observations as an art lover, I too believe that art is not exclusive that can only be experienced and celebrated by creative minds. Art is simple and human. Anyone can appreciate art, and that includes analytical-driven, tech-focused, critical-thinking business professionals.
The idea of this article is not to shed light on the tapestries of art genres or to educate how to become an art connoisseur. But to bring the elusive ‘business of art’ into the spotlight and share a few insights on how marketers and technologists could contribute to the growth of $64 billion global art and antiques industry that employs nearly 3 million people around the world.
The Rising Power of East
It is a prevalent notion that art patrons are only from the west — rich economies with high spending potential. This archaic impression perhaps needs a revisit with China and India now holding firm spots in the top 10 world economies’ list. China is one of the key hubs of the world art market today, after the US and UK, representing 18% of the total $64 billion sales in 2019. India, as a country known for its diverse culture and rich heritage, has a dual advantage in the art space. India can extend its traditional and vibrant art forms to the world and on the other hand with the growing economic prosperity, high net worth (HNW) Indian art patrons can lure western artworks into their drawing rooms. Aside these two populous nations, the South East Asian vantage countries like Singapore, Taiwan and Hong Kong are also gaining attention in the world art world. Research indicates that HNW millennials’ from these countries are active buyers’ of high-priced renowned artworks. Although the Eastern world has just started charting its art path, studies predict that the 18% contribution from the east will multifold in the next 5 to 10 years.
Art favours Online
Art trade, traditionally, has been a super-niche, invite-only, close-knit business. Acclaimed artworks are usually sold to collectors through legendary auction houses like Christie’s, Sotheby’s, Phillips and Bonhams (or) with the help of established dealer networks (individuals and galleries). Technology has no role in interjecting in this age-old tradition of selling. However, akin to other conventional industries, the classy and elegant art industry is now opening its harboured doors to digital sales. In 2019, the online sales of art and antiques through marketplace sites, third-party sites, and auction websites were estimated at $5.9 billion, 10% of the total sales volume. The mere 10% might send out a sombre sign, but a closer look reveals the hidden significance of this number. Invaluable (invaluable.com), the largest global platform for online auctions of fine art and antiques, says that it has helped large auction houses achieve a 42% increase in online sales in 2019 compared to the previous year. In alignment, a 2019 survey conducted amongst 1300 HNW art collectors across key markets in US, Asia and Europe confirms that online art buying is gaining momentum and the trend is likely to grow in the ensuing years.
Social Media and Marketplace
Social media plays a mighty role in creating awareness, building online followers and selling artworks to global consumers. Instagram tops the list as the most preferred social media channel by both artists and art consumers. Artsy, one of the largest online art marketplaces, had almost 1 million followers on Instagram in 2019. Data indicates that 69% of HNW collectors had used Instagram to purchase art last year. Millennial collectors, followed by Gen X and Gen Y, mostly prefer online buying experience. Also, there are dozens of high-traffic (maximum averages to 3.3 million visitors per month) marketplace sites exclusive for fine art that help artists to connect to the world audience and sell their creations online. Interestingly, G2.com, a B2B business software review site, throws up at least ten software products under the categories collections management, gallery management and museum management. Even though the success rate of these software products is unclear, it is evident that the art industry is quite receptive and allying with technology to add more textures to the different layers of its business.
What would be Marketers’ Pitch?
‘I love art, and I want to help artists sell their priceless creations to art lovers sitting on the other side of the ocean’.
Dramatic? I agree; I find it extremely hard to contain my overflowing enthusiasm. On a pragmatic note, marketers can add value to the art industry in more ways than one. Building Martech solutions to simplify online art business, creating an exclusive marketplace for traditional art are some of the thought triggers that are worth pondering. Needless to say, these ideas have to translate into detailed business plans supported by sufficient investments — certainly a long road. However, without any tedious spreadsheets and long business calls, marketers can help millions of independent artists, across the globe, who need guidance and support to take their creations online.
The online art canvas is bland and white. Content specialists, digital marketers and technologists have the opportunity to splash their imaginations on this open canvas to push the $5.9 billion upwards. The very least, you would end up helping an upcoming artist sell her creations.
Explore and experience art.
Reference: The Art Market 2020 report by Art Basel and UBS.
