2015 moving world usa

Moving World USAInsight Into People On The Move

Contents

Introduction Landscape

DemographyUrbanization

ShoppingMass audienceRise of discountMillennial shoppersOnline shopping

Leisure timeDining outDrinkingSportsEntertainment

Health and fitness

Receiving healthcareDiet and exercise

TravelCommutingAlternative modesPublic transitAir travel

TechnologyMass audienceAlways connectedLocation awareness

Overall conclusions and implications

About Kinetic

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Moving World USA 1

Introduction

Americans spend more time than ever outside of the home, whether commuting, working, eating, shopping, watching entertainment or participating in fitness activities.

70% of our waking hours are spent away from the home, according to OAAA’s Take Another Look at OOH - approximately a 50% increase from about 20 years ago.

Advances in technology have further stimulated our on-the-go lifestyle and have significantly altered the out of home ecosystem. As a population perpetually connected through our mobile devices, we’re no longer homebound in order to make phone calls, use the internet, watch entertainment programs or shop online. All of these activities can be performed while in transit, whether walking down the street, traveling on the bus, or picking up groceries at the convenience store.

In the current “age of information”, constant connectivity has rendered the mobile device a ubiquitous necessity outside the home. With complimentary wi-fi an increasingly common amenity in public spaces, many mobile device users will multi-task during a moment’s downtime to pay their bills, shop online, or catch up on unread emails. Deal-seeking shoppers will use their device to find in-store bargains or research potential purchases; millennials take to their phones to post their whereabouts on social media or create a soundtrack for their outing. With the addition of relevant applications, phones become navigational devices for lost motorists or a form of prepaid credit at a favored retailer or fast food chain.

As we emerge from the worst recession in decades, changes in behavior have established a “new normal”: more conscientiousness on consumer consumption, increased use of public transportation and deal shopping. This has impacts on the choices we make, the environments we engage in and the media we consume.

This report details the various environments in the moving world landscape and long-term trends in shopping, travel, health and fitness, leisure time, and technology. Moving World USA synthesizes a wealth of market research and a body of proprietary research to present Kinetic’s view on our engagement with and navigation through the moving world.

Kinetic People trends and insight dataAnalysis of market research taps into published intelligence about people on-the-go. Combined with our own research and understanding of consumer behavior, these insights shed light on changing trends in the moving world.

Kinetic MappingGeography-based evidence of consumer expenditure reveals the great diversity of the US marketplace, north to south, east to west. By way of Nielsen Claritas, aggregated data from the Census of Retail Trade and Consumer Expenditure surveys of the Bureau of Labor Statistics add geographic context to each chapter in our moving world.

70% of our time is spent outside the home.

50% more time is spent outside the home in comparison to 20 years ago.

AureusKinetic’s unique single end-to-end operating system enables our markets to plan and execute campaigns based on local industry data and research, while drawing on global expertise and maximizing efficiency.

“ America is not like a blanket - one piece of unbroken cloth. America is more like a quilt - many patches, many pieces, many colors, many sizes, all woven together by a common thread.” Rev. Jesse Jackson

Landscape

Moving World USA 2 – 3

In both geography (3.7 million square miles) and population (318.5 million people), the US is the third largest country in the world. The population of the US has become increasingly diverse with growing immigrant and foreign demographics making this country their home. Meanwhile, the geography of the US has grown progressively defined by urban development and clustering of industrial output into mega-regions.

Historically, immigration has driven the growth of the US population: one in every ten US residents was not born on US soil. The notion of the country as

Landscape

did you know...In 2013, the US:

• Attracted nearly 69.8 million visitors

• Was home to three of the most visited attractions in the world:

– Times Square in New York

– National Mall and Memorial Parks in Washington, D.C

– Disney World Resort in Florida

• Led the world with over $180.7 billion in international tourism receipts

82% of the US population growth between now and 2050 will be driven by immigration.

a melting pot comprised of people from different backgrounds and cultures has become a key facet of the American identity. The country’s 40 million foreign-born citizens now comprise one-sixth of the civilian workforce. With immigration projected to drive 82% of the US population growth between now and 2050, the foreign-born population will continue to shape American society through their diverse cultural and economic contributions.

An analysis of our moving world would not be complete without first looking at the diverse demographic and geographic landscapes that make up the United States.

Demography

Landscape

In addition to immigration, the aging population is shaping the country’s demographic landscape. Between 2012 to 2060, the 65+ population is projected to more than double from 43.1 million to 92 million, while the 85+ population is projected to more than triple from 5.9 million to 18.2 million. 48 of the 50 states have a retirement age population of 10% or more – Florida’s exceeds 17%, projected to be over 26% by 2025.

Immigration patterns, an aging population, and growing birth rates within minority populations will have a profound impact on the ethnic makeup of the US.

By 2043, Caucasians will no longer make up the majority of the population; Hispanics will double as a percentage of the total, and African American and Asian American populations will grow significantly. The percentage of children with mixed ethnicity will grow from 47.3% in 2012 to 67.1% in 2060. Ethnic diversity is an indelible feature of US demography.

100%

80%

60%

40%

20%

0%

Asian

African American

Hispanic

Non-Hispanic White

2012 2060

67% of American children will be of mixed ethnicity in 2060.

10% 48 of the 50 states have a retirement age population of 10% or more.

Urbanization


Sources: Bureau of Labor Statistics, Census Bureau, CIA World Fact Book, International Trade Administration, Office of Travel and Tourism Industries, Migration Policy Institute, American Community Survey, Centers for Disease Control, Mintel Oxygen, Health and Retirement Study, Pew Research Center, United Nations, The Atlantic Monthly, World Resources Institute, Geoscape, Universtiy of Florida,OAAA.

New York

16.5MM adults in market“City That Never Sleeps”

Los Angeles

13.4MM adults in market“Entertainment Capital of the World”

Chicago

7.4MM adults in market“ Pearl of the Great Lakes”

Miami

3.5MM adults in market“Capital of Latin America”

Landscape

chapter summary• The combination of people living

in, immigrating to, and visiting the US creates a massively moving world.

• Immigration will drive US population growth through 2050.

• By 2060, the 65+ populations in the US will more than double in size, while the 80+ populations will more than triple in size.

• Hispanics are the fastest growing group in the US, and non-Hispanic whites will cease to be a majority by 2043.

• The US has developed distinct markets as a result of accelerating urbanization, growth of mega-regions, and differences in climate.

The changing demographic makeup of the country is accompanied by evolving location and geographic preferences.

Today, roughly 83.1% of Americans reside in cities and suburbs (up 4.1% since 2000, up 8.1% since 1990), well above the global urbanization rate of nearly 50%.

Cities in the southern and western regions of the US have a higher level of lifestyle satisfaction due to factors such as climate, job opportunities, and cost of living, which has had an effect on patterns of domestic migration. In these areas, experts have identified “mega-regions” that are comprised of one or more urban centers, surrounding suburban rings, and a transportation infrastructure that facilitates commuting behavior. These mega-regions produce job clusters that attract people with the experience and education to fuel economic output disproportionate to the general population. Diverse industrial centers have been born from these mega-regions, adding to the expansive and complex landscape that is the United States.

“ Stores are a social experience. I don’t care how many chat rooms there are on a [web]site, they will never provide what the experience of brick-and-mortar shopping provides for all five senses, if not six or seven.” Paco Underhill, The Call of the Mall: How We Shop

Shopping


While 62% of Americans with internet access now shop online at least once a month, brick-and-mortar stores and large chains still attract massive numbers of customers; approximately 140 million Americans pass through the doors of Wal-Mart each week.

Shopping

94.3% of total retail sales in the US are from brick-and-mortar stores.

Million 675

Minutes is the average length of a convenience store visit, compared with 41 minutes spent during a grocery store visit.

Consumers have more retail options than ever. Large scale and advanced distribution systems provide convenience and savings at super-stores, big box retailers, and club stores. While online shopping offers an unparalleled degree of variety, convenience, and cost competition, brick-and-mortar sales still account for about 94.3% of total sales in the US.

Whether grocery store, mall, mass merchandiser, or speciality store, the retail environment is a mainstay in America’s moving world.

5.7

Apple iPhone devices have been sold since 2007.

Shopping

Mass audience

Wal-Mart is the largest retail company in the world. With more than 11,000 retail locations worldwide and nearly $473 billion in revenue, Wal-Mart’s business has impacts far beyond its doors. In fact, if Wal-Mart were a country, it would rank 19th by GDP. While other big box specialty stores like Circuit City, Linens n’ Things, and CompUSA have closed their operations, Wal-Mart has weathered recessionary pressure and continues to draw massive numbers of customers every week.

Milliondollars spent at Wal-Mart every hour of every day.

Wal-Mart By The Numbers:

90% of Americans live within 15 minutes of a Wal-Mart.

$34,880

2,100,000

4,800

7.2 billion

$473 billion

8 cents

140,000,000

19th

Amount of profit Wal-Mart makes every minute

Number of employees

Number of stores in US

Annual transactions

Annual sales

Amount per every US dollar spent at Wal-Mart

Total number of customers per week

World Rank by economy if Wal-Mart was a country

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7.2

Shopping

Rise of discount stores


American consumers like a deal. As the US economy emerges from the 2008-2011 recession and mortgage crisis, one of the key effects is the rise of the price-conscious consumer across all financial and demographic groups. In 2012, the total amount of dollar and discount store retail sales reached $180 billion. Between 2013 and 2018, the upward trend in dollar store visits is expected to continue; sales are projected to grow by 19% to reach $227 billion in 2018.

As of May 2013, 13% of households earning $100,000 or more said they shop more often at dollar stores than they did the year before. did you know...

West Coast residents spend the most per week on groceries.

Top Markets 1 Monterey-Salinas, CA 2 San Francisco, CA 3 Los Angeles, CA

Grocery Expenditures

2013 California Grocery Store Expenditures Weekly Average $150 or more (%)

1.6 – 11.6

11.6 – 12.9

12.9 – 13.9

13.9 – 15.3

15.3 – 49.3

Millennial shoppers

A greater emphasis on improving the shopping experience is inspiring retailers and mall developers to create destinations with urban flair, often referred to as lifestyle centers. Many new malls today have a greater resemblance to town squares and are equipped with a variety of non-retail destinations including movie theaters, restaurants and health clubs that offer complimentary amenities such as wi-fi and louge seating.

Millennial shoppers (ages 18-34) top the list of mall visitors. 23% of Millennials visit malls at least once a week compared to only 9% of Gen X and 7% of Baby Boomers.

When surveyed in late 2012, 55% of Millennial shoppers said they “usually” buy something when visiting a shopping mall even if they didn’t plan to, while 47.3% go to the mall without an agenda. Younger consumers participate in activities such as watching movies, using fitness facilities, and visiting food services at the mall, while older consumers shop. Some 41% of younger shoppers visit malls as a social destination compared to just 19% of shoppers overall. Socializing, relaxing, and shopping go hand in hand for the Millennials.

Shopping

41% of younger consumers visit malls as a social destination with friends.

55% of Millennial shoppers usually buy something at the mall even if they didn’t plan to.

23% of Millennials visit malls at least once a week.

Shopping

Online shopping


The ease and convenience of online purchasing has changed the way we shop. With the internet’s benefits of selection, cost comparison, and access to information, online sales have skyrocketed. In 2015, online retail sales are expected to reach $278 billion, and by 2019, $610 billion.

Sources: US Department of Commerce, Pew Research, IBM, Mintel Oxygen, GeoMetrx, Nielsen, Mediamark Research, Juniper Research, Scarborough Research, Marketing Proofs, Dallas News, eMarketer, Wal-Mart, StatisticBrain, Business Insider, Statista.com

chapter summary• Retail continues to draw

massive numbers of shoppers: 140MM a week at Wal-Mart alone.

• In-store accounts for 94.3% of retail sales despite the rise in e-commerce.

• Price discounting and store labels are affecting consumers’ relationships with store brands.

• In-store shopping is uniquely social, experiential, and not easily replaced by online purchasing.

• Shopping is increasingly augmented by mobile phone technology.

57%63%

73.7%

Smartphone owners use their devices while shoppingUse smartphone to comparison shopUse smartphone to search for coupons

Mobile devices have changed consumer shopping behaviors:

81% of shoppers do research online before making a in-store purchase, while more than half of internet users conducted research for an online purchase. The popularity of online research provides manufacturers a wide array of contact points for reaching the consumer before a purchase decision.

Online shopping methods continue to evolve. Sophisticated mobile devices provide easy access to the internet, enabling people to access information, comparison shop, and participate in social networks while within a brick-and-mortar store. Consumers frequently use their cell phones or tablets for retail transactions. According to IBM, 17% of 2013 Cyber Monday purchases were made through mobile devices, which increased 55% over 2012. Experts expect the shift to mobile to accelerate even further in the following years.

“ The evidence from past recessions is indeed that sports is one of the last things people cut back on. They need their distractions, and they need their obsessions.” Andrew Zimbalist, Professor of Economics at Smith College

Leisure time


Leisure time

45% of adults in the US go to a casual dining restaurant at least once a week.

The US economy has steadily recovered from the great recession of the mid-2000s and continues to show signs of marked improvement. Stock market indexes have risen by double-digit figures year-over-year since 2010, and the markets are expected to remain stable throughout 2015. The unemployment rate is currently at its lowest point in nearly seven years. Millions of new jobs were created in 2014. The housing market is booming, and both online and brick-and-mortar retail sales hit record highs during the 2014 holiday season.

Although consumer confidence is strong, the repercussions of the economic downturn have made consumers more conscious of their expenses and where their money is going. Despite this heightened awareness of expenditures, many hard working Americans appreciate a “night out on the town” and frequent restaurants, bars, movie theatres, sporting events and live entertainment venues for the comfort, convenience and break from daily routine they provide.

A 2013 national poll indicated people are spending an average of 36.82 hours per week (5.26 per day) on leisure and sports, a slight decline since 2012 (5.33 per day). However, in comparison with the people from other developed countries, Americans are working longer hours and have less leisure and vacation time.

65% of coffee in the US is consumed during breakfast hours, 30% between meals, and the remaining 5% with lunch or dinner.

Leisure time

Dining out

Restaurant dining is a convenient and often necessary aspect of our moving lives. In 2013, 65% of consumers said they spent more or about the same dining out as they did in previous years.

A primary factor for dining out is convenience: 48% of adults indicated the reason for purchasing restaurant food is that they are too busy to cook at home. Additionally, take out satisfies every family member’s needs quicker and is easier than cooking multiple meals at home. Families with children prefer to choose those restaurants with good value and cuisine variety for family meals.

As the American consumer’s life becomes increasingly busy, we expect the upward trend in restaurant sales to continue.

90% of 18+ year olds go to fast food or drive-in restaurants at least once a month.

90% of families also go to fast food or drive-in restaurants at least once a month.

$390.2 $399.1

$429.4

$465.7 $492.7

$517.3

$300

$350

$400

$450

$500

$550

2008 2010 2012 2014(forecast) 2016(forecast) 2018(forecast)

US Restaurants Sales and Forecast, 2008-‐2018 ($ in billions, before infla=on)

Leisure time

Drinking


Drinking is a social activity in the U.S. According to a report from Mintel, 50% of drinkers partake to socialize with friends, 46% drink for relaxation, and 32% drink to celebrate.

Younger consumers prefer drinking socially with larger groups of people, in contrast to older consumers. Millennials socialize and consume alcoholic beverages more frequently than older generations, and their drinking habits set them apart as well. Millennials are electic with their alchohol consumption, choosing to experiment with beer, wine and spirits brands. Older consumers are more selective and stick with preferred beverages.

10% of total C-Store sales are in the beer category.

2012 Annual Per Capita Consumption of Beer by State (Gallon Barrels)

20.2 – 24.9

25.0 – 29.9

30.0 – 34.9

35.0 – 39.9

40.0 – 45.8

Top Three Markets

Beer Consumption

did you know...America has 99 million beer drinkers, with an annual consumption of 300 beers per person.

1 California 2 Texas 3 Florida

Sports

U.S. consumers are sports fans, and baseball continues to be the definitive all-American pastime, attracting 74 million attendees in 2013.

Trailing baseball in attendance were ice hockey (21.6 million), basketball (21.3 million), and football (16.4 million). Sports like soccer, NASCAR, and even martial arts have also gained unprecedented mainstream acceptance in the last few years, and over the last decade fans have rallied behind extreme sports like snowboarding, skateboarding, surfing, mountain biking, hang gliding, rock climbing, and sky diving, among others.

The 2014 World Cup fever in the US illustrates how soccer’s popularity is growing among American sports fans. According to FIFA data, U.S. soccer fans purchased more than 200,000 seats for the 2014 games, trailing only Brazil in attendance. America also had the second highest television audience for the games after Germany.

Whether viewing via television, mobile or social media channels, the always connected consumer has a myriad of choices for following their favorite sports teams.

Leisure time

50% of sporting event ticket purchasers also bought team-branded apparel in 2013.

33% of Americans ages 6+ take part in a high calorie burning activity three or more times a week.

11% decline in conference call volume during the last minute of the 2014 US vs. Germany World Cup match.

Entertainment


Americans want to be entertained. With the ascent of streaming media as a preferred option for viewing television, the number of screens on which audiences receive content has expanded considerably. On demand content providers such as Netflix and Hulu enable the consumer to view their favorite programs wherever and whenever they want, and via any chosen device: smartphone, tablet or laptop. The concept of viewing TV within a fixed environment such as the living room is becoming outdated. 64% of Millennials access TV content through online streaming or an app, and peak viewing hours are between 12 - 5PM – a period when viewers are most often OOH. Acknowledging the preference to view streaming media while on the move, most providers have expanded content offerings to include video in “snackable” portions – short form programming that can be easily viewed and digested while navigating through OOH environments.

Visits to the movie theater remain popular, with the number of movie screens in the US at approximately 39,662. Total ticket sales in 2013 were $10.9 billion, up 1% from $10.8 billion in 2012. The growth in popularity for live entertainment, including music concerts and touring Broadway shows, has outpaced most forms of in-home entertainment. Gross ticket receipts for live music concerts grew about 13% between 2008 and 2013, while touring Broadway show gross receipts grew about 5.7% in the same time period. The recording industry, challenged by the economics of digital distribution, has seen live performance replace record sales as the core of profitability.

Movie theaters, sporting events and live entertainment offer unique experiences possible only OOH.

Leisure time

Sources: Bureau of Labor Statistics, E-Imports, Forbes, The Telegraph, Quartz, Motion Picture Association of American, Mintel Oxygen, Gallup Report, Nielsen, Wall Street Journal, Media By Numbers, National Association of Theater Owners, ESPN, American Gaming Association, Pollstar, Mediamark Research, The Broadway League

chapter summary• Eating out or picking up

food provides an important convenience for families and young adults.

• Watching professional sports is a dominant American pastime, and opportunities for interacting with sports media while on-the-move are growing.

• As viewing options and formats continue to evolve, entertainment in all forms provides a welcome diversion to increasingly larger audiences while outside the home.

“ Effective healthcare depends on self-care; this fact is currently heralded as if it were a discovery.” Ivan Illich, Austrian philosopher

Health and fitness


Americans have become increasingly aware of their health and have adopted a proactive approach to managing their wellness. This inclination contributes to massive numbers of Americans moving through health and fitness environments.

Health and fitness

The 2010 Affordable Healthcare Act has had a monumental impact on the healthcare industry. After the act’s implementation, an estimated 10 million people received healthcare coverage through the first quarter of 2014, with 4% of these individuals acquiring insurance for the first time. This dramatic increase of insured individuals has resulted in a common awareness of health considerations and a widespread interest in accessing medical resources and services.

The unprecedented amount of healthcare information available to the public - predominantly through online sources, whether governmental, private or commercial - enables many to take an active role in researching and monitoring their own health. The Obama administration estimates that at least 7.5 million of the newly insured registered for private insurance through the online health exchanges established under the AHA. An additional 3 million people registered for Medicaid, the federal-state health insurance plan for people with low incomes.

With the tendency to conduct health-related activity via the internet, online interactions with healthcare professionals are growing in popularity: 42% of people are interested in using online chat services such as Skype to interact with health practitioners, while 40% are interested in getting a virtual diagnosis from their doctor.

40% are interested in getting a virtual diagnosis from their doctor.

42% of people are interested in using online chat system such as Skype to interact with health practitioners.

Receiving healthcare

Health and fitness

The public’s heightened awareness of health and wellness in the wake of the Affordable Healthcare Act has resulted in an increase in doctor visits, a rise in the number of drug prescriptions, and visits to the pharmacy for fulfillment. These shifts have changed the frequency and amount of time spent in point of care environments.

In 2013, Americans spent an average of 21 minutes in the doctor’s waiting room per each visit. The majority of patients visit a pharmacy soon after leaving a physician’s office - 55% within one hour, and 94% within three hours.

With pharmacies such as CVS, Walgreens and RiteAid expanding their healthcare offerings to include retail clinics, the pharmacy has also become a convenient alternative to traditional doctors’ offices. Located within the stores, these clinics offer onsite health screenings, flu shots, and other primary care services.

did you know...California has the highest total sales for prescription drugs filled at pharmacies.

55% of patients visit drugstores within one hour after leaving a physician’s office.

2011 Retail Prescription Drugs Filled at Pharmacies (Annual per Capita)

7.5 – 9.9

10.0 – 12.4

12.5 – 14.9

15.0 – 17.4

17.5 – 19.3

Top Markets 1 California 2 New York 3 Texas

Health

Diet and exercise


Health and fitness

Sources: Centers for Medicare and Medicaid Services, National Coalition on Health Care, IMS Health, American Time Use Survey, Primary Care Professionals, Centers for Disease Control, AARP, Packaged Facts, Organic Trade Association, Mediamark Research, Mintel, International Health, Racquet and Sportsclub Association, Foxbusiness, The Henry J. Kaiser Family Foundation, IFT, Gallup Statista, The International Health, Racquet & Sportsclub Association

chapter summary• Despite the proliferation of

online health resources, most Americans continue to visit medical professionals for expert help.

• People spend significant time waiting for care, averaging 21 minutes in a doctor’s waiting room each visit.

• A majority of patients get prescriptions filled almost immediately after visiting their doctor.

• More Americans are taking a proactive approach to their health and wellness, by devoting time to working out and monitoring food intake.

While health conditions such as obesity continue to affect the American population (at least 34.9% of adults are overweight or obese), consumers are taking a more proactive approach to their diet that helps to address health conditions before they arise. Between 2003 and 2013, sales of functional foods such as yogurt, energy drinks, and nutritional snacks grew at a steady pace. Organic food sales doubled over the same time period, a testament to the mainstreaming of concern over chemical toxicity.

America’s leisure time has shrunk since 1995, but more of that time is spent exercising.

Over 52% of Americans exercise regularly for at least thirty minutes three or more days per week, and alternative options such as yoga have steadily increased in popularity. The fitness industry has seen steady growth in recent years, with fitness clubs increasing their revenue nearly 3% in 2013 to a level double that in 2000. Today there are approximately 30,500 health clubs in the US. These trends illustrate the increasing emphasis on health and fitness outside of the home.

“ I will build a car for the great multitude. It will be large enough for the family, but small enough for the individual to run and care for… and enjoy with his family the blessing of hours of pleasure in God’s great open spaces.” Henry Ford, My Life and Work

Travel


Ford’s 1908 Model T effectively popularized the automobile and “put America on wheels”. Car ownership remains a cornerstone of American identity and the most enduring image of the moving world. America’s 253 million privately owned passenger cars – nearly four cars for every five people – drive on the largest interstate highway system in the world, with 47,714 miles of roadways as of 2012.

Travel

37% of road congestion occurs during the midday and overnight periods when travelers and shippers expect free-flowing traffic.

Nevertheless, congestion continues to grow – urban areas with populations exceeding three million residents experience an average of 52 hours of delays annually. As a result of lengthening commute times, volatility in gas prices, and growing cognizance of energy limitations,

Americans have embraced “alternative” means of travel as part of their daily routine, whether carpooling, car-sharing, public transit, hybrid vehicles, biking, or walking.

The proliferation of discount air carriers over the past decade has made long distance travel an affordable luxury for more people. Regardless of transit mode or destination, multiple factors render travel periods a significant portion of the individual’s time spent in the moving world.

Commuting

The average American daily commute time has grown from approximately 21 minutes in 1980 to nearly 35 minutes today.

Averaging around 48 minutes per way each day - or two straight weeks of commute time per year - New York City residents have the longest commutes in the country. Washington DC commuters have the longest annual delay time per traveler - about 67 hours per year.

To put the prevalence of personal vehicles in context, if congestion levels on America’s roads remained constant, then about 5.6 million daily carpool or bus trips would be required in the country’s 85 urban areas in order to accommodate the 50+ million new people traveling per year. In other words, four out of every one hundred vehicles would need to become a new two person carpool. In order to address vehicular congestion issues, transportation planners are investigating the impact of improvements such as ramp metering, traffic signal coordination, incident management, and toll lanes.

Travel

did you know...Los Angeles has the largest population that commutes by car.

38% of adults in the US visit a gas station between 3-7pm during a typical week.

2010-2012 Working Population Commuting by Automobile

249,067 – 1,420,109

1,420,109 – 2,591,151

2,591,151 – 3,762,193

3,762,193 – 4,933,235

4,933,235 – 13,642,219

Top Markets 1 Los Angeles, CA 2 New York, NY 3 Chicago, IL

Automobile Commuting

Alternative modes


The majority of Americans are concerned about the environment. About 61% of the public believes there is solid evidence of global warming, while 65% thinks developing alternative sources such as wind, solar and hydrogen energy technology should be a top priority.

When surveyed about their opinion on automobile buying, 41% of potential gas-electric hybrid car customers believe that hybrid vehicles can help to reduce carbon footprints and slow down global warming.

Car sharing is another rapidly increasing alternative transportation mode. When compared with other generations, millennials are more likely to adopt car-sharing as a commuting method. Car ownership for young adults decreased from 73% in 2007 to 66% in 2011. Nearly one million people are now using car sharing programs such as Zipcar, a threefold rise since 2008. AlixPartners predicts that the US membership in car sharing programs will reach 4 million by 2020.

Other environment friendly alternatives such as biking and walking have become popular with Americans.

1 out of 4 Americans are walking or biking more. The number of bike commuters reached 864,883 in 2012, a 10% increase from 2011, and was the largest year-over-year increase since 2007-2008. Americans consider the bicycle a environment friendly commuting tool as well as a good way to save money.

Travel

65% of the public thinks developing alternative sources of energy should be a priority.

25% of Americans are biking and walking more, whether commuting to work or running errands.

Public transit

Public transit continues to be a preferred source of transportation within urban environments. Between 2004 and 2011, transit passenger miles of travel increased by 15%, exceeding the population growth by 7%. In 2011 there were 5.3 billion bus trips and nearly 3.6 billion heavy rail trips made in the US, or about 17x and 11x the US population, respectively.

Unsurprisingly, New York City stands apart as the city with the most annual public transit rides, highest bus ridership (but slowest buses), and most taxi ridership – 240 million riders per year and nearly half a million trips per day.

Although some US transit systems have raised fares or cut service to address budget challenges, there are new rail transit systems currently proposed, planned, or in development in at least 74 urban areas across the country, including Dallas, Salt Lake City, Phoenix, and Charlotte. The popularity of bicycle share programs within urban environments is also on the rise. In 2014 there were approximately 36 US cities with bike share programs – a 600% increase from 2010. New York City’s CitiBike program is the largest in the country; according the NYC DOT over 12 million bike trips have been made since the program began in May 2013.

Travel

90% of yellow taxi pick-ups in NYC occur in Manhattan. Peak hours are between 5pm to midnight on a typical weekday.

41% of daily commuters to Manhattan’s central business district ride the subway between 7-10am.

Air travel


Despite carrier bankruptcies, mergers, and security concerns in recent years, the airline industry continues to handle a massive number of passengers each year. In 2013, 826 million scheduled passengers (almost three times the size of the entire US population) traveled on over 9.7 million flights. Atlanta’s Hartsfield-Jackson airport served the most passengers (94.4 million), followed by Chicago’s O’Hare (66.8 million), LAX (66.7 million), DFW (60.5 million), Denver (52.6 million), and JFK (50.4 million).

The percentage of budget carrier flights has grown from 18% in 2007 to almost 30% in 2013. Southwest Airlines is the most popular carrier for domestic passengers.

Between security, congestion, boarding, and deplaning, the air travel experience can require a significant amount of time. More than half of air travelers spend a half hour or more in ticketing and lobbies before passing through security, and 68% spend another half hour or more post-security. Roughly half of both international and domestic round trips taken in 2009 were for vacations or other personal reasons.

In an effort to change the perception of the airport as a generally unpleasant experience, many terminal facilities at major international airports throughout the US have undergone expensive upgrades. Among the airports maximizing the opportunities provided by the extended “dwell time” of the international traveler are Atlanta’s Hartsfield-Jackson, Miami International, McCarren Airport in Las Vegas, and Los Angeles International. New York’s JFK, O’Hare in Chicago and Dallas/Fort Worth also have projects in the pipeline. With the addition of new retail spaces, pop-up shops/kiosks, charging stations and complimentary wifi, passing through these airports is more akin to visiting a shopping mall than idly spending time in a dull waiting area.

Travel

Sources: Businessweek, US Department of Transportation, Airports Council International, American Public Transportation Association, Nokia Research Center, Census Bureau, Mintel Oxygen, Mediamark Research, City of New York, Taxi and Limousine Commission, Ipsos, University of California at Berkeley , Wall Street Journal, Official Airline Guide, Arbitron, Mendelsohn Media Research, Light Rail Now Project, Navigant Research, New York Daily News, New York Times, Bike League, Pew Research, NYU Rudin Center for Transportation.

chapter summary• Cars remain a timeless symbol

of the moving world and number four to every five people in the US.

• Due to distance and congestion, commuting represents a regular and significant portion of our time spent outside the home.

• Adoption of alternative modes of travel such as hybrid vehicles, car sharing, biking and walking, have accelerated in the last few years.

• Ridership is growing for public transit, particularly in urban areas.

• Despite changes in air travel patterns, a massive audience continues to fly for vacations and business trips.

“ To be happy in this world, first you need a cell phone and then you need an airplane. Then you’re truly wireless.” Ted Turner, Media Mogul

Technology


Technological innovations have a massive effect on every aspect of our moving world. Advances in data storage, transmission, processing, and interface design have put increasingly powerful, small, and affordable electronics into the hands of more consumers, in more environments.

As of 2014, nearly 90% of American adults have a mobile phone, with 64.4% of them using smartphones that provide internet access while on the move. In addition to checking email and web browsing, the majority of them have an active presence on social media networks, use instant messaging, and consume multimedia content online. With mobile web-driven applications and global positioning system (GPS) technology in the hands of a growing percentage of the population, people are interacting with the moving world in new, location-aware ways.

Technology continues to augment our everyday experience in the physical world by layering upon it a wealth of information stored in the ever-expanding virtual world.

Technology

Mass audience

The digital divide – a concept that refers to the gap between those with access to digital information technology and those without – is shrinking. The behaviors of older Americans increasingly reflect the behaviors of younger generations: 77% of seniors own a mobile device, and 59% of people ages 65+ use the internet. 80% of African-Americans are internet users, and 62% of them have a broadband connection at home. Over 54% of Hispanic adults are online.

Seven out of ten US internet users have a broadband connection in their home, while wireless internet connections (wi-fi) are commonplace in cities, public parks, and cafes around the country. Online social networking has also attracted an immense portion of the population – Facebook’s active US monthly audience is about 179 million and is growing fast across all generations, while the number of Twitter users reach over 36 million in 2013. Today, 42% of adults online use multiple social networking platforms.

Technology

Number of US Facebook Users in 2012

<= 500,000

<= 1,000,000

<= 2,000,000

<= 4,000,000

<= 8,000,000

> 8,000,000

did you know...Washington D.C households spend the most on computers.

Top Markets 1 Washington, D.C 2 San Francisco, CA 3 Boston, MA

Technology

Always connected


More than any other device in consumer-driven technology, the mobile phone serves both as emblem and catalyst of the moving world lifestyle.

Mobile phones have become essential in keeping us connected. As of late 2013, nearly one out of three households had relinquished landlines to become exclusively wireless. Mobile devices have evolved into much more than mere telephones. Initially used for accessing email while in transit, smartphones have grown extremely popular, as they integrate text messaging, cameras, music, video, gaming, internet, and a myriad of apps to streamline personal productivity and provide entertainment.

In 2014, approximately 63% of mobile device users went online via their phones, a percentage that has doubled since 2009. Additionally, 34% of these people used their phone most to access the internet, over other devices such as a desktop, laptop, or tablet computer.

Technology

33% of households have no landline and have become exclusively wireless.

63% of mobile service subscribers use their phone to access the internet.

Location awareness

Although GPS technology has been a feature in mobile phones since the 1990s, it’s only been in the last few years that it was applied to a wide range of consumer-oriented, location-based applications. In the last quarter of 2008, 1 in 10 mobile phone users in the US utilized services such as a map or business locator app to discover relevant information about their surroundings while on the move.

Many location-based applications also invite users to document and share their own experiences, thus building a universe of digital information that mirrors their real world navigation pathways. With GPS technology a standard feature in cars and on mobile devices, mass adoption can influence local search and real world navigation. Survey reports indicate nearly 30% of us are highly interested in purchasing GPS-enabled mobile devices that could monitor traffic and construction, suggest optimal driving routes, and update engine software in real-time.

For the out of home industry, the collection of location-based data will completely transform the OOH ecosystem by providing the ability to create specific, hyper-targeted messaging. Emerging tools such as beacon technology allow us to target the consumer with a precise message in the exact location where and when a brand is top of mind for them.

From navigation and socialization to gaming and shopping, mobile sensors and wireless connectivity enable a new, augmented reality in which people can experience and interact with the moving world in ways that transcend human sensory ability alone.

Sources: comScore, Pew Research Center, Forrester Research, Scarborough Research, TNS, Consumer Electronics Association, Facebook, Anderson Analytics, Rasmussen Reports, National Center for Health Statistics, eMarketer, Limbo-GfK, Compete Site Analytics, Metaverse Roadmap, Harris PollTechnology

chapter summary• Widespread internet use has

increased across various ethnic, age, and income brackets.

• Mobile devices enable constant connectivity throughout the moving world.

• Smartphone bring all the benefits of the internet to life on-the-go and will soon outpace traditional computers in search queries.

• GPS functionality delivers location-relevant services for consumers via their phones, cars, and other mobile interfaces.

• Technology augments our daily activity and offers a richer human experience.


Conclusions and implications

• Americans are spending more time than ever outside the home, which presents infinite opportunities to reach audiences via OOH while they are on the move.

• With the proliferation of smartphones, public wi-fi and consumer GPS, OOH can reach targeted audiences via progressive methods such as geo-targeting, geo-fencing and beacon technology.

• Although the demographic landscape of the US is growing increasingly diverse, the collection of location-based data generated by mobile phone usage enables OOH to target a precise audience as they navigate through the OOH landscape.

• Despite surges in the popularity of online shopping and mobile commerce, the vast majority of purchases are made at brick-and-mortar stores. OOH can reach shoppers while they are in-store via their mobile devices as they comparison shop, hunt for digital coupons, or research product information.

• OOH can reach audiences anywhere they spend their leisure time, from health clubs and sporting events to movie theatres and live entertainment events.

• The popularity of public transportation, alternate modes of travel and expanded dwell times while in transit provide a wide array of options for reaching audiences with OOH media.

For more information, contact:

Kinetic US David Krupp Chief Executive Officer, Americas [email protected]

New York Maureen McCloskey Managing Director, Account Services [email protected]

Chicago Jaime Byrdak Group Director, Account Services [email protected]

Los Angeles Cherie Johnson Group Director, Account Services [email protected]

Moving World USA 36

About KineticKinetic Worldwide is the global leader in understanding how brands can connect with people’s lifestyles and the environments they engage with when outside the home. Our expertise and insight allows us to deliver solutions for our clients that achieve their brand and marketing goals.

From roadside billboards to digital screens, mobile phones and interactive experiences, doctor’s office visits to supermarket shopping, and everything in between – we have an ongoing commitment to understanding and engaging with people on-the-go. Kinetic can identify the most effective way for your brand to communicate with people outside of their homes and on the move. We have developed centers of excellence in digital and aviation media, point-of-care communications, multicultural and mobile marketing, and OOH printing and production to expand the possibilities of communicating with diverse audiences on the move. We maximize the impact of our clients’ investments through strategic thinking, proprietary tools, and intelligent application of scale.

Kinetic’s network reaches across the globe. With 42 offices in 27 countries, we offer dedicated expertise in OOH planning and buying solutions and have developed strong partnerships with clients, agencies, suppliers, media owners, and technologists.

Kinetic is the leading lifestyle and environmental media agency in the US with headquarters in New York City and offices in Chicago and Los Angeles.

Kinetic embraces a global dedication to communication, branding, marketing and insight. Our commitment to generating new insights into human behaviors and lifestyle provides impact, depth and relevance to OOH communications.

Kinetic 10 East 40th Street, 37th Floor New York NY 10016 USA

t +1 212 624 4200 f +1 212 624 4232 www.kineticww.com

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