Where traffic is the most terrible …

How many of us have attempted to travel around metro Los Angeles by car at 10:00 am or 2:00 pm, marveling at just how much traffic there is – “always and everywhere”?

If you suspect that LA has the worst traffic gridlock of any American metro area, you’d be absolutely correct.

And we have the data to prove it. INRIX, Inc., a transportation analytics firm, has released its newest annual “traffic scorecard” for 2017 that ranks the U.S. cities with the most traffic congestion.

The listing below shows the ten most “challenging” cities for commuters, ranked according to the average time wasted per commuter during 2017.

[“Wasted time” is defined as the amount of time spent in traffic above and beyond what would have been required had traffic been moving at the posted speed limits.]

#1. Los Angeles – 102 hours wasted per commuter in 2017 (average)

#2. New York – 91 hours wasted

#3. San Francisco – 79 hours

#4. Atlanta – 70 hours

#5. Miami – 64 hours

#6. Washington, DC – 63 hours

#7. Boston, MA – 60 hours

#8. Chicago, IL – 57 hours

#9. Seattle, WA – 55 hours

#10. Dallas, TX – 54 hours

Indeed, Los Angeles tops the list with more than 100 hours of time wasted in traffic. That’s the equivalent of two and a half work weeks.  Ugh.

Several other cities clock in at exorbitant rates as well, although not as high as LA on the “time wasted” scale.

Having driven or been a vehicular passenger in 9 of these 10 cities, none of these figures comes as a surprise to me personally — although I might have placed DC and Boston above Miami and Atlanta based on my own personal experience.

How about you? Which cities rank as your “personal worst” traffic-wise?  And are there any cities which you think should be in INRIX’s “worst of the worst” listing?

Consumer reviews are important to online shoppers. So, are more people participating now?

Based on new research, the time-honored “90-9-1 rule” may no longer be accurate.

The 90-9-1 rule states that for every 100 people active online, one person creates content … nine people respond to created content … and 90 are merely lurkers – consuming the information but not “engaging” with it at all.

But now we have a survey by ratings and reviews platform Clutch which suggests that the ratio may be changing. The Clutch survey finds that around 20% of online shoppers have written reviews for some of their purchases.

That finding would seem to indicate that more people are now involved in content engagement than before. Still, when just one in five shoppers are writing and posting customer reviews, it continues to represent only a distinct minority of the market.

So, the big question for brands and e-commerce providers is how to encourage a greater number of people to post reviews, since such feedback is cited so often as one of the most important considerations for people who are weighing their choices when purchasing a new product or service.

A few of the ways that businesses have attempted to increase participation in customer reviews include:

  • Make the review process as efficient as possible by requesting specific feedback through star ratings.
  • Provide additional rating options on product/service performance sub-categories through quick guided questions.
  • Offering incentives such as a contest entry might also help gain more reviews, although the FTC does have regulations in place that prohibit offering explicit incentives in exchange for receiving favorable reviews.
  • Providing timely customer service – including resolving products with orders – can also increase the likelihood of garnering reviews that are positive rather than negative ones.

This last point is underscored by additional Clutch results which, when the survey asked why online shoppers write reviews, uncovered these reasons:

  • Was especially satisfied with the product or service: ~33%
  • Received an e-mail specifically requesting to leave feedback: ~23%
  • Was offered an incentive to leave feedback: ~5%
  • Was especially dissatisfied with the product or service: ~2%

For companies who might be concerned that negative feedback will be given lots of play, the 2% statistic above should come as some relief. And even if a negative review is published, the situation can often be rectified by reaching out to the reviewer and providing remedies to make things right, thereby “turning lemons into lemonade.”

After all, most consumers are pretty charitable if they sense that a company is making a good-faith effort to correct a perceived problem.

Where in the world would you want to retire?

An American couple enjoying retirement in Costa Rica.

While the world may seem to be a pretty unsettled place thanks to the constant stream of negative news we hear from afar, in reality it’s never been easier to work and live overseas.

For one thing, digital communications have taken once-major barriers and turned them into nothing more than minor speed bumps.

Today, while Americans who have lived overseas for their careers may choose to return to the United States to retire, many others are moving in the opposite direction.

What countries are the best places for Americans to consider retiring to, all things considered?  It would seem that having a nice climate along with a vibrant culture and an interesting social scene are important factors. Personal safety ranks up there, too. Having an attractive cost of living would be another factor to consider – at least for most of us for whom budgets are important to follow.

International Living magazine has just published its newest listing of the “Top 10” countries for retiring abroad.  It’s the 26th annual list published by this magazine, which calculates a “global retirement index” by country and selects the best-scoring ones that are, as the magazine puts it, “outstanding destinations where you can live a healthier and happier life, spend a lot less money, and get a whole lot more.”

Which countries have made the 2018 list? Here are the Top 10, along with a quick wrap-up statement for each as to why:

#1. Costa Rica – “the world’s best retirement haven”

#2. Mexico – “convenient, exotic first-world living”

#3. Panama – “friendly, welcoming – and great benefits”

#4. Ecuador – “diverse, unhurried, and metropolitan”

#5. Malaysia – “easy, English-speaking, and first-world”

#6. Colombia – “sophisticated and affordable”

#7. Portugal – “Europe’s best retirement haven”

#8. Nicaragua – “the best bang for your buck in Latin America”

#9. Spain – “romance, history, and charming villages”

#10. Peru – “low-cost living, vibrant and diverse”

It’s interesting to note that of the countries on the Top 10 list, all but one of them are Latin American or part of the Iberian Peninsula.

I haven’t gone back and researched it, but I suspect that the countries on these lists were quite different going back 10 or 20 years prior.

For more information about the 2018 list and the 12 factors that went into creating the global retirement index for each country, click or tap here.

How about you? Which of these countries, if any, would you consider making your home in retirement?  Or is the notion of retiring abroad completely “foreign” to you?

Fact Checkers: The “New-Old” Job in Journalism

The topic of “fake news” is all over the journalism ecosphere these days. It’s the subject of charges and countercharges tossed back and forth between politicians, industry specialists, the scientific community and the media.

In the current environment, even the slightest mistake in the media – no matter how innocuous – can turn into a contentious social media debate, whereas in the past it might have merited just a quick corrective notation as a follow-up.

These days, more often than not everyone gets sullied in the process – even innocent parties caught in the crossfire.  So, it isn’t surprising that as the issue of “fake news” has risen in prominence, fact checking in journalism has taken on more importance than ever.

An IFCN global summit conference held in Madrid Spain in July 2017.

In 2015, the Poynter Institute established its International Fact-Checking Network to support initiatives aimed at ensuring better accuracy and journalistic best practices. In addition, over the past year the New York Times and several other prominent newspapers have brought more fact checkers on board – not merely to verify the information being reported, but also to work in “real time” with journalists – checking breaking news stories for accuracy as they are being produced.

These new fact-checking resources have been added without a lot of fanfare, but it’s a quiet acknowledgement that the “fake news” controversy is one that strikes at the heart of the press’s reputation.

But there’s a significant shortcoming:  The new emphasis on fact-checking is consequential in just one corner of the news universe.  The arena of “news” now extends well beyond traditional outlets to also encompass social media platforms, blogs and a myriad of informational websites that frequently offer a distinct “point of view” in their reporting.

So, while the fact-checking resurgence may help buttress the reputation of “legacy” news organizations such as high-profile newspapers, national TV networks and marquee online news sites, that doesn’t mean it’s reaching into the many other places where people encounter and consume news.

I suspect that the “fake news” phenomenon is going to be with us for the foreseeable future, despite all of the good-faith efforts to keep it in check.

New Car Technologies and their Persistently Bullish Prospects

Let’s dip back a few years for a quick history lesson. It’s 2010, and various business prognosticators are confidently predicting that the number of electric cars sold in the United States in 2013 will be ~200,000 vehicles.

And in 2015, electric auto sales will reach ~280,000 units.

What really happened?

In 2013 total electric car sales in the United States were fewer than 97,000.  In 2015, the figure was higher – all of 119,000 units.

It’s worse than even these statistics show. The auto industry’s own expert predictions were off by miles.  In 2011, Nissan CEO Carlos Ghosn predicted that his company would have more than 1.5 million Renault-Nissan electric vehicles on the road.

That forecast turned out to be about 80% too high.

More recent sales forecasts for electric cars are much more realistic. As has become quite clear, many consumers aren’t particularly interested in shifting to a newer technology of automobile if they have to pay substantially more for the technology up-front – despite the promise of lower vehicle operating expenses over time.

Even more telling, a recent McKinsey survey found that of today’s electric car owners, only about half of respondents indicated that they would purchase one again. Ouch.

So, what we now have are projections that electric vehicles won’t reach 4% of the U.S. automotive market until 2023 at the earliest. That’s about a decade later than those first forecasts envisioned reaching that penetration level.

Is it all that surprising, actually? If we’re being honest, we have to acknowledge that the most lucrative markets for electric vehicles are in highly prosperous, population-dense urban areas with strict gasoline emissions standards – the very definition of a “limited market” (think San Francisco or Boston).

Thinking about the next technological advancement in this sector, the industry’s newest “bright shiny thing” is self-driving cars – also referred to as the classier-sounding “autonomous vehicle.” But it appears that this sector may be facing similar dynamics that made electric vehicles the “fizzled sizzle” they turned out to be.

Consider the challenges that autonomous vehicles face that threaten to dampen marketplace acceptance of these products – at least in the short- and medium-term:

  • The regulatory and legal ramifications of autonomous vehicles are even more daunting than those affecting electric cars. For starters, try assigning liability for car crashes.
  • Autonomous vehicles require sophisticated mapping and data analytics to operate properly. The United States is a big country. Put those two factors together and it’s easy to see what kind of a challenge it will be to get these vehicles on the road in any major way.
  • How about resistance from powerful groups that have a vested interest in the status quo? Of the ~3.5 million commercial truck drivers in the United States, I wonder how many are in favor of self-driving vehicles?

Not every new technology operates in a similar environment, and for this reason some new-fangled products don’t have such a long gestation and ramp-up period.  Take the smartphone, which took all of ten years to go from “what’s that?” to “who doesn’t own one?”

But there’s quite a difference, actually.  Smartphones were a sea change from what people typically considered a mobile phone, with oodles of added utility and capabilities that were never even part of the equation before.

By contrast, consumers know what it’s like to have a car, and even self-driving cars won’t be doing anything particularly “new.” Just doing it differently.

At this juncture, McKinsey is predicting that autonomous cars will reach ~15% of U.S. automobile sales by the year 2030.

Maybe that’s correct … maybe not. But my guess is, if McKinsey’s prediction turns out to be off, it’ll be because it was too robust.

Smartphones go mainstream with all age groups.

Today, behaviors across the board are far more “similar” than they are “different.”

Over the past few years, smartphones have clawed their way into becoming a pervasive presence among consumers in all age groups.

That’s one key takeaway message from Deloitte’s 2017 Mobile Consumer Survey covering U.S. adults.

According to the recently-released results from this year’s research, ~82% of American adults age 18 or older own a smartphone or have ready access to one. It’s a significant jump from the ~70% who reported the same thing just two years ago.

While smartphone penetration is highest among consumers age 18-44, the biggest increases in adoption are coming in older demographic categories.  To illustrate, ~67% of Deloitte survey respondents in the age 55-75 category own or have ready access to smartphones, which is big increase from the ~53% who reported so in 2015.

It represents an annual rate of around 8% for this age category.

The Deloitte research also found that three’s little if any difference in the behaviors of age groups in terms of how they interact with their smartphones. Daily smartphone usage is reported by 9 in 10 respondents regardless of the age bracket.

Similarly-consistent across all age groups is the frequency that users check their phones during any given day. For the typical consumer, it happens 47 times daily on average.  Fully 9 in 10 report looking at their phones within an hour of getting up, while 8 in 10 do the same just before going to sleep.

At other times during the day, the incidence of smartphone usage quite high in numerous circumstances, the survey research found:

  • ~92% of respondents use smartphones when out shopping
  • ~89% while watching TV
  • ~85% while talking to friends or family members
  • ~81% while eating at restaurants
  • ~78% while eating at home
  • ~54% during meetings at work

As for the “legacy” use of cellphones, a smaller percentage of respondent’s report using their smartphones for making voice calls. More than 90% use their smartphone to send and receive text messages, whereas a somewhat smaller ~86% make voice calls.

As for other smartphone activities, ~81% are sending and receiving e-mail messages via their smartphone, ~72% are accessing social networks on their smartphones at least sometimes during the week, and ~30% report making video calls via their smartphones – which is nearly double the incidence Deloitte found in its survey two years ago.

As for the respondents in the survey who use smartwatches, daily usage among the oldest age cohort is the highest of all: Three-quarters of respondents age 55-75 reported using their smartwatches daily, while daily usage for younger consumers was 60% or even a little below.  So, in this one particular category, older Americans are actually ahead of their younger counterparts in adoption and usage.

The Deloitte survey shows pretty definitively that it’s no longer very valid to segregate older and younger generations. While there may be some slight variations among younger vs. older consumers, the reality is that market behaviors are far more the same than they are different.  That’s the first time we’ve seen this dynamic playing out in the mobile communications segment.

Additional findings from the Deloitte research can be found in an executive summary available here.

Welcome to the Ad Duopoly: Google and Facebook

Unless you’ve been living under a rock, it’s pretty obvious that the advertising marketplace in America has changed radically in the past few years.

In short order, we’ve seen the largest concentration of digital advertising converge on just two players:  Google and Facebook.  In fact, according to digital advertising research firm eMarketer, those two firms alone are attracting two-thirds of all digital ad dollars in the United States.

But this development isn’t all that surprising.  The vast bulk of Google’s ad market share results from its search engine marketing platform (paid search). As for Facebook, it dominates digital display advertising not just in America, but in many other countries all over the world as well.

And both companies are the “big kahuna” players in the mobile advertising sector, too.

What’s interesting is that, despite the shortcomings that many people recognize in both types of digital advertising – banner blindness and often ill-targeted paid search results — healthy growth in both forms of advertising continues apace.

Google’s ad revenue growth has average around 20% for more than 30 straight quarters. Its growth in the third quarter of 2017 is right on pace at 22%.

For Facebook, the growth dynamics are particularly lucrative; its year-over-year ad revenue growth is pushing 50%.

Mobile ad revenues are growing even faster; they accounted for “only” $9 billion in revenues for Facebook in just the third quarter.  And just as paid search advertising revenues represent more than 90% of Google’s total company revenues, mobile advertising accounts for nearly 90% of Facebook’s overall revenues.

With so much advertising activity, one might wonder from where it’s emanating.

One answer to that question is that the “universe” of advertisers is exponentially higher than we’ve ever encountered before. With low barriers to entry and “anyone can do it” ad development tools, “Jane and John Doe” are far more likely to be advertisers in today’s world of digital marketing than was ever contemplated just a few decades ago.

To wit: Facebook estimates that its social platform has more than 6 million active advertisers participating on it at any given moment in time.  That’s the equivalent of 2% of the entire population of America.

It’s kinda true:  “We’re all advertisers now.”