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Art-Report - The Method

Measuring the value potential of contemporary art

Art-Report focuses on the logic behind the contemporary art market. We analyze the value potential of artworks and publish a large part of this information on the Internet. 

 Artists whose works are included in the collection of the Museum of Modern Art (MoMA) in New York are at the leading edge of the art business.  Even more prestigious is a dedicated solo +exhibition or retrospective at the museum. Globally, the attention on these artists rises as soon as the show is announced - and shortly afterwards the prices for their work will also climb. This is an example of the so- called economics of attention, which postulates a relationship over the long-term between the marketing of an artist and the price that their work commands on the international art market. This is the fundamental thinking behind the Art-Report ranking system. It attempts to measure both qualitatively and quantitatively, the presence of an artist on the market, and beyond this, to determine the value potential of contemporary art.
 
1. Actual Attention (Exhibition presence): An exhibition at MoMA provides the highest valuation score in the ranking of art world attention. This is followed by exhibitions at museums such as the Centre Pompidou in Paris, the Kunsthalle Zürich, the Tate Modern in London, or the Nationalgalerie in Berlin. Beyond this, the participation at biennials and festivals plays an important role, as well as solo and group exhibitions in commercial galleries and at art fairs.
 
2. Potential Attention: The potential attention reflects the quality of the artist's marketing network - or also the chance of awakening future attention, or the likelyhood of further improving the level of standing developed to date. This is derived from the degree of the level of contacts to curators, collectors and the galleries that represent the artist at fairs and gallery locations. What is decisive here is not the quantity of the galleries, but rather the quality. Art-Report evaluates these networks in the form of points for the respective gallery / collector network. The sum of the actual and potential attention (as a constant factor) gives the total Global Ranking.
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I. Exhibition presence (Report Points) result from the participation of an artist in the solo or group exhibitions of the above-mentioned galleries and institutions. The respective valuation is multiplied by 30 for a solo exhibition and by between 15 and 2 for a group exhibition, depending on the number of artists taking part. If a group exhibition is curated by an influential curator then this is reflected in the assignment of additional points. We systematically evaluated the exhibitions at the leading 1,000 museums, galleries, and institutions since 2004. Other institutions and galleries can receive authorization from Art-Report to independently list their events on the site at no cost to themselves. The AR Points result from the sum of the individual exhibition participations for the respective year.
 
II. Network to galleries, curators, and collectors (Network points): A gallery's network has - in addition to the quality of its stable of artists - a big influence on the resonance of an individual artist in the art world and on the art market. Furthermore, those artists represented at the leading art fairs attract attention from many interested parties simultaneously.
 
Collection Points: Those artists, for example, represented in the collection of MoMA, receive 200 points, i.e. the valuation 20 multiplied by 10. At this point, some 950 collections have been evaluated. The influence of collectors also flows indirectly into the ranking scores because they often exhibit their works in their own museums, or are able to lend their art works to public museums and institutions that then, in turn, are able to exhibit them in high profile exhibitions. What is also of significance for the Collection Points and Art Report Points is the so-called 'US-Quota'. This reflects the fact that it is, above all, the US collectors and collections that set the tone for the international art market. The larger this US-Quota is, the greater are the chances of seeing a rise in value.
 
III. Valuation, Price Factor and Price Attention Ratio: The Attention Points are yet to be reflected in the realized prices. Here, ART-REPORT utilizes the analytical methods used on the stock market, to meassure the value of a quoted company via the Price/Earnings-Ratio . Art-Report defines 'Price' not as the respective Dollar or Euro value of an artwork. Instead, we use the 'Price-Factor', which is common in the international art trade. This figure is derived through the division of the price by the sum of the height, width, and, where relevant, the depth of an artwork. Art-Report defines "Earnings" as the actual and potential attention achieved in a given year, reflected by the quality of the network and the resulting presence in the international art world. The Price Attention Ratio (PAR) for a representative work of an artist is calculated by the division of the price factor by the so-defined "earnings".
 
IV. Performance spectrum: On the website, Art-Report provides artist rankings, profiles, and the highlights of current exhibitions, events and auctions. On request we also provide a deeper analysis of the standing of an artist or artist group including a ranking of their work in an international contemporary art context.