YouTube meets craigslist at HotSwap, a US-based video-classifieds site for used cars. HotSwap allows anyone to publish a car ad to sell their own car. Sellers use a video-capable handset or digi-cam to capture a walk-around of their ride, register with HotSwap and upload. For buyers, a simple navigation system makes it a cinch to find that slightly-used dream car!A step by step video tutorial helps sellers show their car in the best light possible. A radical trust reminder is aptly served when the cute video tutor suggests, “if there is an issue with the car, make sure you focus in on it”.
Springwise notes:
“HotSwap’s organizers even advise sellers not to edit their videos into slick presentations, saying the home-produced uploads give viewers a more believable impression of a vehicle being sold. Believability isn’t a word often associated with used car sales, and it could end up being the biggest factor in HowSwap’s success.”
If a picture is worth a thousand words, what’s a video worth? Nothing according the HotSwap. Individuals can sell and buy cars for free. Dealerships with multiple vehicles for sale must pay for listing – a familiar model used by many auto-classified magazines across the country.
From Wikipedia:
In 2003, the market for classified ads in the United States was $15.9 billion (newspapers), $14.1 billion (online) according to market researcher Classified Intelligence. The worldwide market for classified ads in 2003 was estimated at over $100 billion. Perhaps due to a lack of reporting solidarity Market Statistics vary concerning the total market for internet classified ads. The Kelsey Research Group lists online classified ads as being worth $13.3 billion, while Jupiter Research provides a conservative appraisal of $2.6 billion (2005) and the Interactive Advertising Bureau lists the net worth of online classified revenue at $2.1 billion (April 2006).
Newspapers continue a downward trend in classifieds revenue as internet classifieds grow. Classified advertising at some of the larger newspaper chains has dropped 14% to 20% in 2007 while traffic to classified sites has grown 23%.[source]
Overall, HotSwap is a smart-thinking technology mash-up and that makes it a “radical do” in the avant-garde of the classified ads universe.
I wonder how long before ebay responds with video?
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19 Responses to “HotSwap Video Ads Declassified”
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November 8th, 2007 at 6:41 pm
Video Classified Ads for Autos – Youtube meets Craigslist…
YouTube meets craigslist at HotSwap, a US-based video-classifieds site for used cars. HotSwap allows anyone to publish a car ad to sell their own car. Sellers use a video-capable handset or digi-cam to capture a walk-around of their ride, register with…
November 8th, 2007 at 7:06 pm
[...] You can read the full story here [...]
November 8th, 2007 at 8:45 pm
Funny how everything old is new again online. iMotors did something very similar back when I was working in partnership with them for a different company in 2000… before the dot com crash and no more funding.
Good to see the idea is back.
November 8th, 2007 at 11:40 pm
I imagine the ubiquity of editing software, broad-bandwidth and digital camera equipment would have proven a challenge in 2000. Perhaps imotors pioneered an idea has finally seen opportunity here today.
November 8th, 2007 at 11:58 pm
Yes and no.
If you were heavily involved in the online space in the US as all of the technologies were being developed and tested, the equipment on the consumer side was limited, of course, the demand wasn’t there, but not on the brand side. And the penetration of broadband vs. dial-up was most pronounced in the key target markets – urban centres. I worked with EarthLink as they rolled out their Broadband product and the conversion was huge.
If you had a scanner and camera, or video camera it was relatively easy to do quite a bit of CGC online. Yes, their idea was ahead of the curve, and extended to a point that has yet to be replicated, but it was only far ahead of the VC and stock market at an inopportune time. The opportunity to extend was there from the beginning, but the ‘bubble’ and desire for an IPO made it unsustainable in the short-term. The true tragedy of the Internet, as you are surely aware.
You seem defensive. Is this your client?
November 9th, 2007 at 1:48 am
The only issue I truly see on further reflection is the lack of true measurable statistics on the car – sort of a Blue Book checklist and a mechanism for complaints. Sure, if your a dealer, your reputation could be damaged, but what remedy does a consumer have if a fellow consumer misrepresents the car online? the process for remedy would be quite long and cumbersome, without the eBay type giant corporation legal protections. And even then, the burden is more in terms of “reputation” and banishment vs. true lawsuits when you’re dealing with cars costing tens of thousands of dollars.
It should be interesting to see how they sustain themselves long-term. Thanks for bringing it to the forefront.
November 9th, 2007 at 5:31 pm
Nope, they’re not a client…not meant to be defensive, on the contrary, was supporting your point.
I wonder… Incorporating state to state rules surrounding vehicle histories in the back end would be a daunting task, but probably a worthy one. I wonder if they will go that way. In ontario, you have to pay for that information. It is required to provide that information to the buyer as well. A system where they could post that information once purchased would serve nicely. I’m not sure how they would handle it in the US with 50 states, each with different systems to interface to.
In the same vain, I suppose consumer protection would continue to be enforced at the vehicle registration level. Currently, auto traders, pennysavers etc. do not defend the quality of merchandise or represent all points stated to be true. I guess that is why i like this system. If the seller follows all the suggested content notes in their video, it should be clear to the buyer what they are getting into. If they don’t, buyer beware. If there is a lie posted, recourse to the governing body, in this case, the state of purchase, for laws that already exist. The exact same as the newspapers and weekly classifieds in print.
This gives you less to worry about, that is a huge win.
Given the ubiquitous accessibility to the technology, the ease of use and the intuitiveness of it all, I see it as a potential “microwave oven moment”. What was life like before it?
We shall see if it catches on in the bigger venues.
Thanks for the comments!
November 9th, 2007 at 8:14 pm
Video classifieds is a concept that can be applies to more than just selling cars. Online dating, real estate, even bars and restaurants.
Horror Business Store
Penguin Pizza
Brinn
Cute kittens
November 10th, 2007 at 2:27 pm
Interesting comments, folks! Quite the most intelligent discourse I’ve seen generated by an article like this.
In any case wanted to mention there’s also a site out there called Listasaurus.com that offers video classifieds for more than just cars. You can even upload a video in a Business Directory ad. Best part is, they PAY you to list your ads (in eligible categories of course, and non-commercial). Veddy interesting. I’ve actually listed some video ads out there myself.
And I think there’s another company already doing something to help people incorporate video in their ebay auctions…but I can’t remember who it is.
November 11th, 2007 at 1:23 pm
Hi Andrej and Ziggy, and thanks for submitting your sites to the discussion.
What are some of your ideas to increase consumer to consumer videos, and gain more profile for your sites?
November 11th, 2007 at 2:10 pm
Collin,
There’s no sustainable market presence for any one of the video classifieds sites out there. Over time people get used to the concept of video classifieds and realize the value proposition video brings to the table.
Content is king, and video classifieds has to identify the markets where video makes most sense.
I believe that a sleek, technologically dominant video classifieds platform that connects small businesses with their customers is needed to attain critical mass and go on to become a household name. Naturally, my company iMoondo is in the best position to do so
November 11th, 2007 at 5:04 pm
Good luck with it!
Thanks for the comments
November 12th, 2007 at 12:58 am
Hi Collin! I think as it becomes easier to create videos, consumers will place more video ads. From a consumer perspective, it takes more time to have to create the video, possibly edit it, and even possibly convert it to make it a useful took in classified ads.
I think this concept will catch on as it becomes more commonly used, and also if people are selling items like a car, house or something mechanical where you can show the moving parts. I also think it will become more helpful from a business to consumer standpoint, for businesses to promote their products and do a “commercial” of sorts.
(Oh and Listasaurus isn’t my site, actually it’s run by a friend of mine…)
One thing I do like about Listasaurus is that you’re not required to include a video…the choices are a good thing, because sometimes creating a video is overkill for something say, like a book. And I think there will always be those folks who just can’t be bothered to put a video out there.
As far as increasing the profile for the video sites, I believe it’s like anything else. A combination of different types of marketing, word of mouth and of course, necessity and demand will pave the way for the video sites.
Hope this sheds some light! Thanks Collin for keeping the discussion going.
November 12th, 2007 at 4:46 pm
It would seem to me that once the thrill of the IDEA of video classifieds wears off; after one takes an afternoon off to slog through poorly lit and badly cut videos of peoples cars… One will realize that once again that the ancient interface, clear concise and consistent craigslist remains the defacto classifieds section of the internet.
Of course; if I were to post my car on craigslist; AND I did have some time to shoot a video. I could always point prospective users to video of the car on my YouTube page [let them cover the cost of that]…
November 12th, 2007 at 5:03 pm
Hi Curmudgeon…yes, craigslist has the traffic but not everyone is in love with the ancient interface, or the inundation of all the unfortunate spam that goes along with the mass of people using the site. (not to mention the bad attitude that often seems to abound there within the CL community).
Also not everyone wants to have to maintain a YouTube account…I, for one, don’t. Why go to two different places? That’s a lot more work. Plus CL users often have the lovely habit of flagging down people who include links to other sites, so not sure how you would get around that.
And you would still have the same issue of “poorly lit and badly cut videos…”, as just putting the video on YouTube doesn’t resolve the issue of the director/editor of the film, LOL.
I also don’t think the thrill of video will wear off, it’s certainly not wearing off at YouTube!
Also the Pay Per Listing program is a nice feature…which is a new concept that no one else seems to be doing except Listasaurus.
I think there’s room for everyone, CL is great because of the traffic, I still use it as well. But it’s not the end all be all and certainly there’s room for some healthy competition. I think Yellowpages and some other similar sites are starting to incorporate video as well…
But good discussion, nonetheless!
November 12th, 2007 at 5:04 pm
that could work.
Or ebay could offer video as an option… save us the trouble of posting, reposting, linking etc.
or you can buy your car from somewhere else… like craigslist… a place I would never buy a car, but would buy a book, or a computer bag… but I guess, no video required for that… so the value remains, particularily for big ticket items, like autos and houses…
November 14th, 2007 at 9:55 am
“craigslist… a place I would never buy a car” – So, I assume you would never buy a car listed in your local newspaper classifieds; or the Auto Trader. All three of these outlets require the same diligence of the buyer [they are all person to person sales].
Lets strip this argument down further. In my mind, video; and other “heavy” media components are a detriment to the true value of this medium. Once you start concerning yourself with “production values” you start to loose out on the power that craigslist provides; i.e. a place where “I” can simply sell to “You”. AND, isn’t that what all this Web 2.0 stuff is all really about?
The classified section of the ol’ newspaper used to be a place were one could cut through all the Madison Ave. advertising clap trap and find the stuff they need locally – Craigslist remains one of the only truly peer to peer utilities remaining on the internet. A site almost solely dedicated to user generated content devised solely for user to user interaction.
What does video have to do with that?
November 14th, 2007 at 10:49 am
I don’t see how video and other “heavy” media (not sure what that is?) components are a detriment to the true value of the medium of a classified ad…realtors have been using Virtual Tours online for years, and that is certainly a lot more helpful than a one or two line ad that you can put in a newspaper with just an address and a selling price.
The beauty of the Internet is that you’re NOT limited like you are with print media.
You ask “what does video have to do with” a site dedicated to user generated content…well I pose the question back, what does a photo have to do with it? CL allows folks to upload a photo…user generated content should be whatever the person wants to generate. And if it’s more helpful in describing their product or service, then why not?
And as far as user-generated content and video, I refer back to YouTube, which is entirely user generated content.
And I think what video has to do with the progression of classified ads, or Internet advertising in general, is that the web has moved toward more capability. Include video if you want to…because you CAN.
But as far as craigslist–which for some reason this seems to have become a discussion about–there’s no video capability there and no one is saying there should be. And as you know, unless the CL users want it, Mr. Newmark won’t be changing a thing.
So stop worrying about video on CL, and let the other sites offer that option if they want to. People will use it if they find it useful, and if not, they won’t.
November 14th, 2007 at 7:44 pm
No Curm… I wouldn’t buy a car from the paper, or from craigslist. I have purchased a motorcycle from auto trader, but that was 8 years ago. Video wasn’t even viable then. I haven’t even bought a news paper, or an auto trader for the purpose of purchasing a vehicle in over 5 years. But that is me… and not really on point here.
I agree with Ziggy… If CL and/or ebay don’t see the value in video, with a position similar to Curms.. the market will choose the winner whom ever is right.
I don’t think this is a technology discussion… I have no idea how video compromises craigslist’s amazing service as “a place where “I” can simply sell to “You”. … I also don’t see hiring madison ave. folk to create an ad for my 96 Jetta listing either… although, the way the market is going for Mass Advertising… they probably would take the job.