In light of Royal Bank of Canada’s reveal of the winner for its 19th annual Canadian Painting Competition, we would like to do a brief introduction to corporate sponsorship for emerging artists using RBC as an example. Trying to explore a little more into the rationale behind such sponsorship and how it might make sense for the banks and businesses, this post aims to presents some different insights for artists hoping to leverage these opportunities.
The RBC Canadian Painting Competition is part of the greater project of the RBC Emerging Artists Project, which has supported over 2,000 artists, provided over 160 mentorship opportunities, and invested over $4.2 million in 160 organizations in 2016 alone according to its Corporate Citizen report. The competition itself, has seen 682 submissions from all young artists all across the world competing for the national prize of $25,000, the two honorable mentions of $15,000 and 12 other finalist $2,500. After collecting the submissions every April, three juries comprised of experienced art directors and curators, select the finalists and jointly decides on the final winners. Perks of wining the competition also include being purchased and made part of the RBC corporate collection.
On the project’s official website, RBC’s dedication in art is defined as an understanding and support of art’s role in “building vibrant communities and strong economies”. However, on its Wealth Management website, we can also see how RBC used its involvement in the art world to brand itself as an experienced adviser in art investment. Click here to check out RBC’s recommendation on art investing.
It is no coincidence for Private Banks and Wealth Management firms to advertise their expertise in the art market. According to Deloitte’s 2016 Art & Finance report, over 50% of the firms surveyed agreed that art offers “portfolio and asset diversification” and differentiates themselves among the “increasing competition in the Private Banking sector”. Many banks would offer their clients services a similar to an art dealer or invite them on a tour of the banks’ corporate collection as client entertainment.
Among other corporate art collectors and art patrons, RBC has chosen an unique area by targeting emerging artists and using it as a collecting opportunity. Traditionally speaking, investors and collectors, who are concerned about the resale possibilities of the artworks, would be less likely to purchase from less established artists due to the illiquid nature of their works. Or as Artsy puts it:
“Consider other industries, such as cars or homes, where consumers feel comfortable plunking down large sums because they know their purchase has resale value (and in the case of real estate, a potential upside). Now think about art: not so much.”
However, with various online auction sites and artists’ social media page enabling artists to reach a boarder range of potential buyers at a much more affordable cost, the art market for emerging artists is drastically changing. According to Art Basel & UBS’s survey on 50 online auction companies, “24% of their transactions were at prices below $1,000, and 75% were for less than $50,000”. RBC’s experience and brand in fostering and connecting with young artists will further prepare them in tapping into this trend of more affordable collecting.
Obviously RBC is not the only company that hosts art competitions, so here I would like to quickly introduce two other opportunities and how they are presented differently:
Canadian Wildlife Habitat Conservation Stamp and Print Program: Every December, Canadian Wildlife Habitat Conservation would invite young artists to submit their work depicting a species featured that year. Not only the artists would be able to get media exposure from the Canadian non-profit, the winning submission will also be made into stamps to be distributed and collected all across the country. Good at realistic paintings? Participate now
ING Unseen Talent: On top of art directors hand picking finalists and winners among young artists, the Dutch Multinational Bank also welcomed all art lovers to submit their photography work on Instagram to win prizes and entry to special events. On top of supporting the artists community in the region, such competition was also able to encourage and engage a huge number of creative and intelligent individuals, who could might as well be their clients.
Have you participated in any art competitions or have hosted any? Let us know your experience, we are curious to find out.
