Added value of visual arts

Added value of visual arts

We start talking about the added value of visual arts with a short definition of added value. In short, added value is the amount of value that is created in the process of producing a product or providing a service. In other words, the difference between the value of the final product and the value of the materials and services used to produce it is called added value.

Suppose a woodcarver makes a wooden frame. To make this frame, he uses wood, nails, glue, and tools. The total value of these materials is 100 thousand tomans and he sells it for 200 thousand tomans. In this example, added value is created in the amount of 100 thousand Tomans.

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Book introduction

“The Social Value of the Arts: An Economic Perspective” by David Throsby

“The Social Value of the Arts: An Economic Perspective” by David Throsby: In this book, Throsby provides a comprehensive economic analysis of the value added by art to society. He examines the various dimensions of the arts, including their cultural, social, and economic contributions, and clarifies the intrinsic and instrumental value of artistic endeavors.

Defining the added value of visual arts

Value added in visual arts generally refers to the difference between the value of a work of art at the time of sale and the value of the materials and services used to create that work. In other words, added value shows how much new value the artist’s creativity and skill have added to the raw materials.

The formula for calculating added value in visual arts:

Added value = selling price of artwork – (cost of raw materials)

Example:

A painter creates a painting. In creating this work, he uses canvas, paint, brush, and other painting tools. The total value of these materials is 500 thousand tomans. The painter sells the painting for 2 million tomans. In this example, the added value is one million five hundred thousand tomans.

The importance of added value in visual arts

Shows the efficiency and creativity of the artist: high added value shows that an artist uses his creativity and skill efficiently.
An indicator of the prosperity of the art market: the increase in added value in the visual arts indicates the prosperity of the art market.
Basis of tax calculation: In some countries, value-added tax (VAT) is also applied to works of art.

Added value in visual arts at different levels

At the artist level: value-added shows how much new value an artist has created through their creativity and skill.
At the gallery or art market level: value-added shows how much value the gallery or art market has added to the artwork.
At the national level: the added value of the total visual arts in a country represents the contribution of this industry to the gross domestic product (GDP) of that country.

Application of added value in visual arts

Added value in visual arts is also used in the following fields:

Evaluation of artists’ performance: Added value can be used to evaluate the performance of artists and compare them with each other.
Determining the price of works of art: The added value is used as a basis for determining the price of works of art.
Economic analysis: added value in visual arts can be a tool to analyze the economy of art and examine its contribution to the macroeconomy.

Factors affecting added value in visual arts

Artist’s creativity and skill: The greater the artist’s creativity and skill, the greater the added value of the artwork.
Fame and popularity of the artist: The works of famous and popular artists have a higher added value.
Rarity and originality of the work: rare and original works of art create a higher added value.
Demand for the work of art: The higher the demand for a work of art, the higher its added value.

Different forms of creating added value in visual arts

Added value in visual arts is created in different ways:

 Increase in the price of the work of art: with time, the price of original and valuable works of art increases.

 Selling artwork in international markets: Selling artwork in international markets, due to higher demand, can increase its added value.

 Use of artwork in advertising and marketing: The use of artwork in advertising and marketing increases its added value by increasing recognition and popularity.

In addition to increasing the price of the artwork over time, selling the artwork in international markets, and using the artwork in advertising and marketing, there are various other ways to create added value in visual arts:

Providing art services:

Wall painting: Creating wall paintings in public places such as buildings, parks, and bridges can help the visual beauty of the environment and promote the cultural identity of that area.

Graphic Design: Providing graphic design services such as logos, posters, and website design can be used in branding and marketing businesses.

Illustration: Illustration of books, magazines, and computer games affects the attractiveness and appeal of their content.

Mass production of works of art:

Printed copies: Producing quality printed copies of works of art such as paintings and photographs helps to increase people’s access to these works and create added value for the artist.

Sculpture: The mass production of small sculptures and decorative works of art leads to the creation of added value for the artist and the promotion of art in society.

Product design: The use of artistic designs in the production of products such as clothes, dishes, and furniture can create added value for the artist and make the products more attractive to consumers.

Use of new technologies:

Digital Art: Creating digital artworks such as digital paintings, animations, and NFT art is a way to create added value for the artist and attract new audiences in the virtual world.

Augmented and virtual reality: The use of augmented and virtual reality in the display of works of art can create a new and attractive experience for the audience and help in creating added value for the artist.

Teaching and promoting art:

Conducting training courses: establishing training courses in painting, sculpture, and other art disciplines to create jobs for artists and promote art in society.

Holding exhibitions: holding individual and group exhibitions of works of art to introduce the artist and his works to the audience and create sales opportunities for him

Publishing books and articles: Publishing books and articles about art and artists increasing public awareness of art and creating added value for artists and writers

Supporting artists:

Buying works of art: Buying works of art from artists is beneficial in supporting them financially and motivating them to continue their artistic activity.

Financial support of art projects: Financial support of art projects leads to the implementation of creative ideas of artists and the creation of valuable works of art.

Introducing artists to galleries and art exhibitions: Introducing artists to galleries and exhibitions is necessary to create new opportunities to display and sell their artworks.

Finally, by using creativity and innovation, we can find new ways to create added value in visual arts.

At the end

Added value in visual arts is an important indicator for measuring the value and importance of art. The increase of this index not only contributes to the prosperity of the art market but also has many social and cultural effects. Today, the positive role of art in creating added value at the micro and macroeconomic levels has been realized more and more, and the necessity of creating suitable platforms for its growth is obvious. The economy of art plays an undeniable role in preserving the artistic cultural heritage of a nation and contributes to its survival.

More resources to study

To read more, you can refer to the following articles:

Credibility and Economic Value in the Visual Arts

اشتغال، سودآوری و ارزش افزوده هنرهای تجسمی (مطالعه موردی: گالری های هنری تهران)

Why Investing in Art and Creativity Is Crucial in Today’s Economy