ARTSblog

Jenifer Thomas

Every time someone questions the value of data mining, I can’t help but hear the Gold Rush-era adage, “There’s gold in them hills!”

The wealth of information gleaned from data analysis can provide great guidance in decision making, especially in relation to pricing. And if you’re a data junkie like me, you might enjoy data mining, too.

Analyzing data gives insight into how the audience values our product. We can then price according to that value.

For example, an organization may assume that its box seats are the best in the house, and price them accordingly. But as the first performances near it’s clear that total sales are increasing, but the boxes aren’t selling. Often this prompts a frantic decision to discount those seats to encourage sales. But hold steady! A more reasoned approach is to ask a few honest questions:

1. Is the box ticket price too high?
2. Is our perception of the value of a box seat too high?
3. Are the range and relationship of the prices out of whack?

Here’s where data comes in—mining into where people are choosing to sit in the house and what they are paying often gives answers.

For example, if we look at the data and see that demand is actually strongest in front-and-center orchestra radiating out, and there is little demand for the boxes, then the audience is spelling it out for us. They value the orchestra seats more and are willing to pay a price they deem reasonable for that value. The box seats are not as valuable to our audience, and the pricing is not reflecting that difference in value. Read the rest of this entry »

Tara Aesquivel

Thinking about the economy can be rather depressing. For many people, it can seem like a volatile god: a mysterious force that affects everything and we mere mortals have no control over its whims.

Let’s start with a basic idea of what I mean when I write about “the economy.”

Economic analysis is often an attempt to make the complex world of interconnectedness more comprehensible by quantifying everything, usually through monetization. In other words, the world is complicated so we make charts.

The “economy” is everything that happens. Economics is a (left-brained) method of analyzing everything that happens, and it’s mostly focused on measuring everything in dollars and euros.

This focus on monetization is problematic for the arts because the value of artistic products is not always calculable by how much it cost to make them or by how much people are willing to pay for them. In fact, we often strive for the opposite—to give away the arts for free and know that they are priceless.

The subversive tack accepts economics for the way it is and uses the system to our advantage. In order to do that, we need to know the basic principles and be able to speak the lingo: quantification.

The arts sector is getting much better at quantifying the value and impact of the arts. Here are three great examples:

• National Endowment for the Arts report on arts education
• The Otis Report on the Creative Economy of the Los Angeles Region
• The Cultural Data Project

I took my first economics class in graduate school. I had no idea what to expect. As it turns out, the heart of economics can be summed up in a phrase: “supply and demand.” This is something we already understand in the arts. Read the rest of this entry »