The Revolutionary Role of Virtual Reality (VR) and Augmented Reality (AR) in Auction Houses

Technology is Transforming the Traditional Auction House Model

In recent years, Virtual Reality (VR) and Augmented Reality (AR) have begun to transform the traditional auction house model. By offering immersive experiences, these technologies are breaking down barriers and opening up new opportunities for both buyers and sellers in the art and collectibles market.

The Rise of Virtual Reality and Augmented Reality in Auctions

Auction houses like Sotheby’s and Christie’s have been early adopters of VR and AR technologies, seeking to enhance the bidder experience and expand their reach. VR allows potential buyers to virtually step into an auction room or gallery from anywhere in the world. Using a VR headset, they can explore items in 3D, examining intricate details as if they were there in person.

AR, on the other hand, can overlay digital information onto the real world. Through an app on a smartphone or tablet, buyers can see how a piece of art might look on their wall or visualize a sculpture in their living room.

Delivering Sale Success for a New World

One of the pioneering examples of VR in auctions was Christie’s collaboration with the VR platform, ArtVR. During the 2018 “Out of This World” auction, Christie’s offered a VR experience that allowed users to view the intricate details of rare meteorites from their homes. This initiative saw a significant increase in remote participation and engagement, with VR viewers spending 20% more time examining items compared to traditional online views.

Sotheby’s has also embraced these technologies. In 2020, amidst the COVID-19 pandemic, Sotheby’s launched a series of virtual tours for their Impressionist and Modern Art sales. These tours, available through both VR headsets and desktop applications, allowed collectors to closely inspect artworks while respecting social distancing measures. The result was a 30% increase in online bidders and a record $363.2 million in sales for their June auction.

Post-Pandemic “In Real Life” Reluctance

The COVID-19 pandemic has permanently altered the landscape of many industries, including auctions. Reluctance to attend in-person viewings has accelerated the adoption of VR and AR. A survey by Hiscox in 2021 revealed that 65% of art buyers preferred virtual viewing rooms over physical ones, citing convenience and safety as primary reasons. This shift has not only kept the auction market buoyant during lockdowns but has also expanded its reach to those who might not have participated otherwise.

Go East! Exciting Opportunities in Asia

The expansion of VR and AR presents significant opportunities in new markets, particularly in South East Asia and China. These regions have seen rapid growth in the number of high-net-worth individuals and a burgeoning interest in art and collectibles. VR and AR technologies break down geographical barriers, allowing potential buyers from these regions to participate in auctions without the need for international travel.

In 2021, Sotheby’s reported a 40% increase in new bidders from Asia, driven largely by their enhanced digital offerings.

Integration into Digital Channels

Auction houses have seamlessly integrated VR and AR into their existing digital channels.

Websites now feature VR tours and 3D views, accessible through a simple click. For instance, Christie’s website allows users to experience VR tours of their latest exhibitions without needing specialized equipment.

Social media platforms, particularly Instagram and Facebook, have also become key channels for AR applications. By leveraging AR filters, auction houses can let users virtually “try on” jewelry or see how a painting fits in their space, directly through their social media feeds.

Join the VR and AR Revolution

Virtual Reality and Augmented Reality are revolutionising auction houses, offering immersive and interactive experiences that attract a global audience.

By integrating these technologies into websites and social media, auction houses are not only adapting to post-pandemic preferences but also tapping into new and lucrative markets.

As VR and AR continue to evolve, their role in the auction industry is set to become even more significant, promising a future where the boundaries of physical and digital worlds are seamlessly blended.

To find out how you can integrate VR or AR into your digital channels get in touch. Or read more about developments in the auction world here.