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seeds of the gods
The research gives evidence that Visual Arts whose advertising expenses are one third of program service expenses, are profitable despite of the financial crisis. Brand reputability is connected to advertising expenses much more than to intangible assets that can include advertising investments and brands. Signaling qualities and economic performances of advertising can generate a competitive advantage at 'hard times', when cultural firms diversify their revenues as Welfare States do not have enough resources for them. Using a recent microeconomic database we empirically estimate the relation between intangible assets, advertising expenses, revenues and profits for Italian Visual Arts, whose sample is defined referring to the latest legislative definition that includes 'landscape'. The intangible asset includes advertising investments and brands whose signaling value is undoubted at 'hard times', when cultural entrepreneurs have to signal their 'identity and reputation' in order to increase grants and, as a consequence, revenues.
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