Hotswap Review Party

I’m late to the Hotswap review party, I know. Frankly, after reading about them on TechCrunch I was surprised they raised 2 million dollars. 2 million? For sales videos of cars? That must have been a great presentation. I think most dealers are slightly confused by Hotswap, or, at least, I am. The idea makes sense to me in one particular sense, and that’s when the cost for the customer to acquire more information about the car is greater than the dealer’s cost to provide the videos. Said another way, when the consumer does not have easy access to the car videos make sense, i.e., eBay.

Of course, I’ve already seen videos on eBay Motors, which is why Hotswap confused me. Revenue opportunities have to be limited, because, as Jeff pointed out, few dealers area going to take the time to make videos. And this makes sense, as a dealer’s goal is to get people down to the dealership to see the car in person. I would, however, love to see video used on online vehicle exchanges like OVE, ATC, et cetera.

Buying across state, from dealer auctions, engenders a little anxiety before every purchase; in some cases, there may be only one picture and a condition report of the car. Finding more about the car is difficult, and seeing more the interior, exterior, and, importantly, hearing the car startup, idle, and if possible, run, provides great value to the dealer before purchase. Video is a great opportunity to reduce the risk associated with purchasing a vehicle out-of-state and consignors that provided videos would likely obtain a premium for their cars.

4 responses to “Hotswap Review Party

  1. This site has great potential. It fits in with the idea of putting automotive retail into the hands of private sellers. Hot swap should be useful for blog and social marketing purposes.

    For instance, companies that do lot management for auto dealers could provide low quality videos, post them to Hotswap, and then blog about them. In fact, a blog specifically designed for that could be huge. Users posting blog entries about the videos they publish would be good for relational and search marketing purposes.

    Additionally, companies that do quasi-videos for dealers where they stitch together still images and overdub automated audio, if they could publish those videos to Hotswap then that could be interesting. We should look in to that.

  2. Ryan,

    I see what you’re saying, and from an SEO perspective I can see a lot of benefit. If users create UGC around the video it adds additional content about the car and helps to prevent some duplicate content issues.

    And, depending on site traffic, ‘slide shows’ used as video could give the average dealer a way to reach the hotswap audience. It’ll be interesting to see how Hotswaps audience emerges, i.e., what type of car buyer with use the site. I think that will dictate what types of dealers end up using the site and how.

  3. Why in the world would you use hotswap when youtube has a FREE video hosting with 150million potential customers roaming around?

    Proof?
    Hummer H3: Views: 3,640

    Toyota ForeRunner: Views: 670

    Joe Pistell

  4. There is a company that is doing a pic to vid as an entry level production for dealerships to get into the video world. They will do your entire inventory on a monthly basis and the cost is very inexpensive. There are more elaborate videos available, but I don’t think dealer are ready for it nor is it necessary. Just getting a spot where videos are like youtube.com etc. is important especially from a SEO stand point. Oh by the way the company I spoke to is Dealer Global. dealerglobal.com is the url.

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