Art analytics is changing the art industry.
Data analytics and big data are transforming healthcare, transport and even entertainment. However, one area where technology has not made many inroads in is the art industry. Long associated with pricey cocktails, frilly clothing and a bucket load of cash, the art industry has not adopted technology at the same rate as the aforementioned sectors. This is slowly changing as the industry realises that big data and analytics can deliver massive gains for years to come. Hence, in this blog post, I will discuss the different ways art analytics is transforming the industry for the better.
What are the changes art analytics brings?
Art analytics opens up new possibilities and improves current processes. Here are a few ways.
Deeper context to pricing
Art analytics allows the industry to measure the financial and intrinsic value of each art piece with greater accuracy. One reason art pieces generate a lot of value is that they are rare. Exceptionally popular art pieces can be auctioned for millions of dollars because there is no other duplicate piece available. However, the price of a single art piece is often decided without important context like the artist’s other completed works. Art analytics promises to address this situation by pulling information from different sources to give a more well-rounded view of the art piece’s value.
Measuring cultural value
While we discuss the economic value of art, there are also social and educational benefits as well. Art brings cultural value to any society, but measuring that value in precise numbers has always been a challenge. However, thanks to art analytics, it is becoming easier to measure the intrinsic value art brings, not just to our homes but the public as well. Art analytics makes use of new data like social media and user-generated sites that make it easier to measure the emotional and mental effects of art.
Developing new business models
Art and the wider cultural sector can diversify their business models and discover other avenues for revenue thanks to art analytics. Art institutions can experiment with different business models without risking their hard-earned capital. Art analytics uses sophisticated algorithms to analyse data to make predictions on how targeted customers respond to new art events. For example, will customers pay for live-stream theatre? With analytics, institutions will be emboldened to try out new forms of art and develop new experiences that will expand their audience.
Art experts often have a hard time deciding the right price for an artwork. But what if there was a way for art institutions to know the exact price of an artwork? Art analytics opens up this possibility by analysing prices from past auctions to discover the right price for a particular artwork. This is a huge boon for art experts who often have trouble setting the right price for certain art pieces. While exceptionally rare pieces are hard to price, analytics systems are perfect for pricing a wide range of art pieces, making it a huge boon to the industry at large.
There is a misconception that art and data don’t mix. The belief persists when there is an obsession of measurements over creativity; the latter falls behind. For example, the obsession with revenue makes it hard to justify the intrinsic value of art. However, with judicious use, art analytics can encourage creative experimentation rather than discourage it. Data analytics can be used to predict a customer’s response to new ideas without having to invest significantly in them. In fact, it is not too far-fetched from how Netflix tests the market for a new concept before investing in a brand new show or movie. When used properly, analytics can encourage experimentation and innovation in the arts industry.
Painting a new picture with analytics
Art analytics is an exciting prospect because of its promise to change the multi-million dollar industry that has often struggled to incorporate big data and analytics into their operations. With analytics, it is possible to have an industry that is vibrant and more active than ever before. Art is already a huge part of Sydney’s cosmopolitan makeup and analytics has the potential to make it more active and vibrant than before, which is exciting for Sydney and the world.