Anne Somers, chief executive of ATG Media, discusses how online-only auctions are revolutionising the world of art investment.

Anne Somers, chief executive of ATG Media, discusses how online-only auctions are revolutionising the world of art investment.

Earlier this year, Christie’s announced a landmark event: an online-only sale of Andy Warhol’s paintings, drawings, photographs and prints - the first such event in its long-term partnership with The Andy Warhol Foundation for the Visual Arts. For one week from 26 February 2013 collectors around the world had the chance to log on and bid online for 125 works by the pop art star. The success of the event exceeded all expectations; sales totalled $2.3 million - double the pre-sale estimates. In total, the sale attracted 65,000 visitors and over 1,500 bids from 36 countries.

Experts agreed that the success of the sale was at least in part due to its digital nature. The innovative format allowed pop art lovers and collectors from all over the world to take part, including many of those who had never had access to a Warhol work before. The event is a clear illustration of the continued popularity of art among high net worth individuals across the globe as a hobby, passion and investment opportunity. It also highlights a fundamental shift in the way the art market operates and the way today’s investors acquire artworks.

Recovery and growth remains elusive for much of the world economy but art has more than held its value. To give just one example, last year Sotheby’s sold Edvard Munch’s The Scream for a record-breaking $119.9 million. At the end of 2012, Christie’s posted worldwide sales of £3.92 billion, a 10 per cent increase on 2011, indicating that the globally wealthy are flocking to art as a safe haven investment.

Convenience is key

However, the way collectors and their advisors acquire works has been transformed by the advent of the digital age – something we at ATG media have experienced first-hand as part of our work with auctioneers around the globe. Today’s high and even mid net worth individuals are increasingly self-made time-poor entrepreneurs, who value convenience above all else. The increasingly young, tech-savvy and international HNW population expect to be able to bid for their dream piece of art – be it an old master painting or a light installation by a rising star artist – from their offices, while on holiday and on the move.

The answer is often online bidding. It can save you time, travel and money and - with today’s technology - you do not have to give up the excitement of fast-paced bidding. An online auction still keeps the traditional auctioneer right at the centre of the bidding process, while allowing potential buyers to register bids just as they would in the saleroom. Each lot is presented automatically with description, estimate and image, while the monitor indicates all the bidding in the room. Live audio and video feeds relay the action as it unfolds in real time. You can experience the process as if you were present in the room – but from anywhere in the world. Technology certainly helps bring auction houses and art collectors together. We have seen bidders from 150 countries logging on to thesaleroom.com to take part in art and antiques auctions, and the items sold have ranged from Japanese woodblock prints to modernist Russian paintings.

The world is getting smaller and online art sales are set to maintain and grow their popularity over the coming years. The savvy investor should always consider the online dimension – even in the fine art world that is still often seen as one of tradition. A few simple tips will help you get the most out of online sales.     

Top Tips for the novice online bidder:

Before the live auction

·        View an online auction first to see how it works

·        Use the right email address; this sounds self-evident but you will be surprised by how many times we see problems linked to a typing error in the registration email address

·        Register to bid before the event. Some auctioneers like to pre-authorise their bidders before the auction starts

·        Contact the auctioneer directly if you would like a condition report or more information on particular lots

During the auction

·        Set yourself a spending limit; internet bidding carries all the atmosphere of the sale room and it is easy to get carried away

·        Bid early and bid often

·        Do not wait until the last second to bid, as the hammer may go down before your bid is received