On Tuesday, May 25, Barnebys hosted a webinar about Emerging Trends in the Auction Industry. The session saw industry leaders from all over the globe come together virtually to discuss the monumental shifts in the art and auction worlds.
Barnebys co-founder Pontus Silfverstolpe kicked off the session with an introduction of the major emerging trends, then moderated a panel discussion comprising these industry leaders: Mark Millea (co-owner and -founder of Millea Bros), Andrea Forsberg (Head of Communications, Blomqvist) and Payne Edington (Chief Operating Officer, the Potomack Company Auctioneers).
During his introduction, Silfverstolpe presented data-informed trends that are shaping the industry. A major shift he identified was the proliferation of online sales. According to The Art Market Report, online sales doubled in value from 2019 to 2020. Last year saw more online sales than ever before, coming in at $12.4 billion. Barnebys, too, witnessed this change, with online users going up by 40%. This trend is unlikely to disappear, with 94% of auction houses expecting online sales to grow even more over the next five years.
Silfverstolpe also highlighted the importance of knowing your buyer, as different demographics will require different online solutions. Not only will Gen Z have different buying interests than Baby Boomers, but they also have different familiarities with digital platforms. Over the past year, and indeed in 2021 as well, Barnebys has seen increased traffic from the ages 25-34, making Millennials one of the site’s largest demographics.
Related: Art Collectors: The Next Generation
Auction houses should tailor their business to their largest demographics, carefully considering and responding to their client base. They can best do this by intelligently using data to target their clients. Auction houses should take control over the bidding experience, being sure to personalize the bidding process to their demographics. They can benefit from loyal and returning customers by growing datasets of online behavior and bidding history.
In the panel discussion, Mark Millea of Millea Bros. shared some of the ways his auction house has responded to the trend of digital proliferation and online sales, including investing in AV equipment to better livestream sales. The auction house aims to ensure the online experience is engaging, just as if the buyer were in the physical room.
Related: Out with the New, In with the Old
Andrea Forsberg of Blomqvist, one of Scandinavia's leading auction houses, shared similar approaches to the digitalization of the art world. In response to coronavirus, the auction house accelerated changes on their roadmap to digitalization. These changes were received incredibly well, and resulted in their strongest financial year since the 1980s. Blomqvist found that their audiences are receptive to shifting services and short-term pop-ups, and have a sense of general flexibility.
Payne Edington, of the Potomack Company, shared similar insights to his two co-panelists. His auction house found that the move to digital platforms was not only more practical for the company, but also for its clients. Clients were able to enjoy smoother consignments through the uploading of photographs, and attend live-streamed auctions from the comfort of their own homes.
In sum, digital technologies and platforms are here to stay. From live-streaming auctions to using data more intelligently, there are many ways auction houses can ride the digital wave and come out on top.
Read more about emerging trends in the art world with Barnebys Magazine
Article by Amanda Andrade
