1.
MASTER
CLASS
Brendan Abbott
NEW BUSINESS DIRECTOR, MARKETING SERVICES
EXPERIAN
LONDON, UNITED KINGDOM ~ SEPTEMBER 1 - 2, 2022
DIGIMARCONUK.CO.UK | #DigiMarConUK
The Cost of Living is Impacting
Consumer Behaviours,
How do Digital Marketers Adapt
and Thrive in Challenging Times

2.
We will cover
• A crisis looms
• Pressures on the consumer
• Changing consumer behaviour
• What brands need to consider
• Discretionary income
• Research in partnership with YouGov on key verticals
• The impact on different consumer groups
• How to reach these audiences
Brendan Abbott
New Business Director
brendan.abbott@experian.com Josh Torok
Strategic Agency and Partnerships Manager
josh.torok@experian.com

3.
We’re facing a once in
a generation crisis, thrice
in a generation period of
economic instability,
in a society still recovering
from the last crisis…
How is this different
from the last ones?
• This has been building slowly rather than suddenly.
• It has potentially a broader, more nuanced and
stickier economic impact.
• We have time to get organised and while not ahead
of it, can get clearer around how to address it.

4.
What is causing the
Cost of Living crisis?
High inflation is outstripping wage
and benefit increases
• Fuel prices hit record high
• Energy prices hit 10 year high
• Food prices rising
• National Insurance increase
• Bank interest rates rising
• Universal Credit decrease
Why the price rises now?
• Russia/Ukraine conflict
• Post Covid disruption to
global supply chains

5.
• Food
• Non-alcoholic drinks
• Financial services
• Interest on unsecured credit
• Life assurance and pensions
• Clothing and footwear
• Medical products and services
• Landline, mobiles and internet
• Nursery and school
• University
• Social protection
• Housing/rent
• Maintenance and repairs
• Water
• Mortgage repayments
• Household insurance
• Purchase or leasing
• Fuel and oil
• Transport by rail or bus
• Vehicle insurance
Pressures grow as costs of
essential spend categories rise
• Electricity
• Gas, other fuels
Property
Food
Finance commitments
Energy
Transport Family
Predicted price rises over the next 12 months
42%
8%
7%
6%
6%
0%
Energy
Food
Property
Transport
Family
Finance

6.
Overall spend reductions
Experian/YouGov Cost of Living Survey, August 2022
Alcohol out of
home (pubs,
restaurants)
100%
90%
80%
70%
60%
50%
40%
30%
205
10%
0%
Alcohol
consumed
at home
Alterations to
home and
garden
Days out
(cinema,
theatre)
DIY (tools,
decorating)
Gym or club
subscriptions
Household
appliances and
major durables
(TVs, tablets)
Holidays Household soft
furnishings
(carpets,
bedding)
Luxury
personal items
(jewellery, gifts)
Personal care
(haircuts,
treatments,
cosmetics)
Recreation
items (for pets,
hobbies)
Eating out Take aways TV or music
subscriptions
No reduction Minimal-moderate reduction Significant reduction or stop completely

7.
Not all will experience
the same level of impact
Universal Credit
Removal of £1,040 PA
2022
Energy prices
Rise of £1700 PA
NI increase
Increase of £255
Grocery inflation
Additional £1,600 PA
for average family
BoE Rate Rise
Average of £852 PA
Public sector, charities and
financial institutions need
to understand who is likely
to go into stress to tailor
support strategies.
All organisations are trying
to understand changes in
affluence of consumers who
will be facing unfamiliar
challenges balancing budgets.
Understanding this is key. The opportunity to do this is available.

8.
Brands will be affected
differently so a good place
to start is by answering
business critical questions
• Which customers need help now
• Which customers will need help in the future
• Which customers will continue spending
• Which areas are most affected
• Which are not
• Which retail sites are most affected
• Which are not
• How do we find new customers

9.
How we assess likely shifts in discretionary income
through Cost of Living impacts
Pull in ONS and
macroeconomic
indicators
Essential spend
estimated using 31 ONS
defined household level
categories
Gross income and
tax/deduction
estimates
Use price increases
to scenario forecasts
for new discretionary
income estimates

10.
Boiling that down, the simple way to understand customers
is by profile and location. Which is where we can help.
A
City
Prosperity
B
Prestige
Positions
C
Country
Living
D
Rural
Reality
E
Senior
Security
F
Suburban
Stability
G
Domestic
Success
H
Aspiring
Homemakers
I
Family
Basics
J
Transient
Renters
K
Municipal
Tenants
L
Vintage
Value
M
Modest
Traditions
N
Urban
Cohesion
O
Rental
Hubs
Mosaic UK contains 15 groups and 66 types
Powerful cross-channel consumer segmentation
Effective across all channels – from traditional
offline to digital TV and display
Over 100+ years of combined experience
Interactive segmentation portal
Combination of Experian proprietary,
public and trusted third-party data

11.
£3,535
£3,060
£1,974
£2,227
£1,858
£1,574
£1,274 £1,285
£986 £1,084
£952 £892
£611
£680
£604
£3,238
£2,787
£1,733
£1,941
£1,608
£1,318
£1,045 £1,047
£803 £857
£733 £666
£448 £477
£393
0%
10%
20%
30%
40%
50%
60%
£-
£500
£1,000
£1,500
£2,000
£2,500
£3,000
£3,500
May 2022 May 2023 Projection % Drop from 2022
Change in average monthly discretionary income
May 2022 to projected in May 2023

12.
6% 6% 5%
1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0%
37%
35%
28%
17% 16%
13%
10%
7% 7.0%
5% 5% 4%
2% 2%
0.5%
% with >£30 in 2022 % Projected with >£30 in 2023
Impact of Cost of Living increase
520k households currently have an estimated discretionary income of less
than £30. 150k of these households have less than £0 left over each month.
We predict in 12 months the following anticipated price rises:
Over 3.6m households will have less than £30 left over each month
having paid for essential items (2.7m < £0).
The three most impacted Mosaic groups:
K: Municipal Tenants, I: Family Basics and L: Vintage Value.
Great Yarmouth
1% > 16%
1,184% increase
Enfield
6% > 17%
181% increase
Nottingham
3% > 12%
279% increase
North Devon
4% > 17%
360% increase
Proportion of
Mosaic Group
with <£30 D.I
2022 2023

13.
Food
25%
41%
35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Continue as normal,
even with the
anticipated price
increases
Maintain current
spending levels by
switching to a cheaper
alternative or reducing
consumption
Make more significant
changes to reduce
what my household
spends in this category
32%
36%
39%
30%
34%
27%
21% 22%
12%
16%
19%
31%
19%
30%
24%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Proportion of respondents stating they will “Continue as normal”, even with anticipated price
increases
• 76% of the population surveyed, stated they would make significant spending
changes, switch to cheaper alternatives or reduce consumption on food.
• Mosaic Groups I: Family Basics and J: Transient Renters were the least likely to
continue as normal despite price rises.

14.
• 53% of the population surveyed stated they would make significant spending
changes or stop spending altogether on Adult clothing.
• Mosaic Groups B: Prestige Positions and A: City Prosperity were the groups most
likely to continue their current spending behaviour, irrespective of Cost of Living
price increases.
Adult clothing Proportion of respondents stating they will “Continue as normal”, even with anticipated price
increases
21%
19%
40%
13%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Continue as
normal, even
with the
anticipated
price
increases
Maintain
current
spending
levels by
switching to a
cheaper
alternative or
reducing
consumption
Make more
significant
changes to
reduce what
my household
spends in this
category
Stop
spending in
this category
completely
Not
applicable - I/
my household
does not
normally
spend on this
27%
31%
26%
19%
27%
25%
22%
19%
10%
18% 18% 18% 19%
24%
23%
0%
5%
10%
15%
20%
25%
30%
35%

15.
Alcohol out of home
12%
14%
12%
19%
9%
33%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Not reduce
at all (i.e.
continue as
normal)
Reduce a
little
Reduce a
moderate
amount
Reduce
significantly
Stop
paying for
completely
Not
applicable -
I/ my
household
does not
normally
spend on
this
29%
19%
21%
27%
22%
28%
24%
27%
30%
18% 18%
32%
28%
34%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
• Only 12% of the surveyed population stated their spending behaviour with regards
to Alcohol (out of home) would remain unchanged in the next 12 months.
• Mosaic Groups, N : Urban Cohesion & L : Vintage Value were the groups most
likely to reduce spending significantly or stop spending completely.
Proportion of respondents stating they will either “Reduce spending significantly” or “Stop
spending completely”

16.
Days out
14%
16% 16%
23%
10%
21%
0%
5%
10%
15%
20%
25%
Not reduce
at all (i.e.
continue as
normal)
Reduce a
little
Reduce a
moderate
amount
Reduce
significantly
Stop
paying for
completely
Not
applicable -
I/ my
household
does not
normally
spend on
this
30%
20%
23%
28% 29%
32%
28%
35%
51%
33% 33%
30%
31%
41%
28%
0%
10%
20%
30%
40%
50%
60%
• Only 14% of the surveyed population stated they would continue spending as
normal on days out.
• Mosaic Groups I: Family Basics and N: Urban Cohesion were most likely to
significantly reduce or completely stop spending on days out due to rising
living costs.
Proportion of respondents stating they will either “Reduce spending significantly” or “Stop
spending completely”

17.
Take aways
10%
13%
15%
27%
12%
23%
0%
5%
10%
15%
20%
25%
30%
Not reduce
at all (i.e.
continue as
normal)
Reduce a
little
Reduce a
moderate
amount
Reduce
significantly
Stop
paying for
completely
Not
applicable -
I/ my
household
does not
normally
spend on
this
Proportion of respondents stating they will either “Reduce spending significantly” or “Stop
spending completely”
• Only 10% of respondents said their spending on take away meals will be unaffected
by the rising cost of living.
• Mosaic Group E: Senior Security were the least likely to significantly reduce or stop
spending on take away meals.
39%
31% 30%
33%
24%
39%
37%
40%
42%
45%
42%
41%
38%
41%
32%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%

18.
TV or Streaming
Subscriptions
25%
19%
15%
14%
7%
20%
0%
5%
10%
15%
20%
25%
30%
Not reduce
at all (i.e.
continue as
normal)
Reduce a
little
Reduce a
moderate
amount
Reduce
significantly
Stop
paying for
completely
Not
applicable -
I/ my
household
does not
normally
spend on
this
15%
17%
17%
18%
10%
17% 17%
19%
25%
22%
19%
12%
21%
26%
25%
0%
5%
10%
15%
20%
25%
30%
• 25% of the population surveyed stated they will not change spending on television
or streaming media subscriptions.
• Mosaic Groups E: Senior Security and L: Vintage Values are the least likely
to reduce spending on television and streaming media but are also the least likely
to spend on these services currently.
Proportion of respondents stating they will either “Reduce spending significantly” or “Stop
spending completely”

19.
Holidays
39%
11%
33%
17%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
I will still be going
ahead with this
as originally
planned
I will still be going
ahead with this,
but I will be
delaying it
I will still be going
ahead with this,
but I will be
spending less
than originally
planned
I will be
cancelling this
entirely
19% 19%
21%
25%
19%
26%
23%
36%
32%
22%
34%
32%
27%
30%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Proportion of respondents stating they will either “Delay or Cancel Entirely” a planned family
holiday
• 28% of the surveyed population stated they will either be cancelling or delaying
a planned family holiday, with 33% spending less than originally planned.
• Mosaic Groups H: Aspiring Homemakers and K: Municipal Tenants, the most likely
to cancel or delay.

20.
Nadia
Group I: Family Basics
Nadia is a care home assistant,
getting to work on public
transport. Nadia knows how to
work to a budget but it’s still a
challenge with 2 kids and the
hours she works. She listens to
ad-supported Spotify on her
commute.
Nikki
Group H: Aspiring Homemakers
Nikki is on maternity leave as a
new mum, though she was
working as a marketing manager
for a software company. Nikki is
focussed on making her fairly
new house a place to entertain
her new mum friends. She
enjoys getting a coffee locally
and when she has time will work
through a series on Netflix.
Households are
not consistently
impacted by the
Cost of Living crisis
Emma-Louise
Group B: Prestige Positions
Emma-Louise is a solicitor for a
large practice and works both in
the office and at home. Emma-
Louise enjoys brunching with the
girls, and never misses Race
Week at Cheltenham. At home
she’ll flip through the latest
Vogue in front of the fire while
watching a true crime drama on
Netflix.

21.
Emma Louise’s household currently has
£3,060 each month left over after
essential household expenditure.
Experian forecasts that due to increases
in fuel, food, gas and electricity given
the current numbers, that discretionary
income will reduce to £2,787.
Emma-Louise
Group B: Prestige Positions Not reduce at all
Reduce minima
to moderate
Reduce significantly
or stop
Alcohol out of home 19% 35% 19%
Alterations to home and garden 22% 29% 26%
Days out 26% 31% 20%
Holidays 40% 30% 21%
Household appliances and major durables 23% 31% 29%
Personal care 36% 42% 15%
Eating out 22% 43% 26%
Take aways 14% 29% 31%
TV or streaming media subscriptions 30% 35% 17%
She is in a fortunate position that she
still can afford many of her life luxuries.
That said, she will be putting on hold the
house alterations and appliances she
was looking to update and is going to
stop with the sushi orders on Deliveroo.
She’s also going to scale back on her
nail appointments to once a month.

22.
Nikki
Group H: Aspiring Homemakers Not reduce at all
Reduce minima
to moderate
Reduce significantly
or stop
Alcohol out of home 15% 27% 27%
Alterations to home and garden 14% 20% 31%
Days out 15% 35% 35%
Holidays 21% 34% 26%
Household appliances and major durables 16% 15% 44%
Personal care 30% 38% 24%
Eating out 11% 44% 33%
Take aways 5% 38% 40%
TV or streaming media subscriptions 23% 47% 19%
Nikki’s household currently has
£1,574 each month left over after
essential household expenditure.
Experian forecasts that due to increases
in fuel, food, gas and electricity given
the current numbers, that discretionary
income will reduce to £1,318.
She has decided to stay home more and
cook for herself – cutting out restaurants
altogether and forgoing her cheeky
Nandos. She’s also dropping her Cineworld
subscription. But she will be holding onto
her Netflix account.
She’s saving her trip to Florida for another
time.
She’s also going to wait on the new
furniture for the house.

23.
Nadia
Group I: Family Basics Not reduce at all
Reduce minima
to moderate
Reduce significantly
or stop
Alcohol out of home 6% 25% 30%
Alterations to home and garden 6% 19% 42%
Days out 11% 21% 51%
Holidays 13% 18% 36%
Household appliances and major durables 10% 18% 57%
Personal care 15% 36% 40%
Eating out 8% 26% 49%
Take aways 7% 33% 42%
TV or streaming media subscriptions 35% 32% 25%
Nadia’s household currently has
£604 each month left over after
essential household expenditure.
Experian forecasts that due to increases
in fuel, food, gas and electricity given
the current numbers, that discretionary
income will reduce to £393.
Nadia is really having to cut back on
everything across the board. This
includes a lot more cooking and
preparing her lunch at home every day.
She’s hoping to be able to make a trip to
see her mother but with cutting back on
most things, it’s still going to be tough.
She’s thankfully got a colleague who cuts
hair for the residents who has offered to
cut her hair for free.

24.
Geo-Location Insights
Cost of Living dashboard – how our solution
underpins business planning requirements
• How will different scenarios impact local
area populations
• Where is the exposure, to what extent?
Public sector Charities
Focus of support now
and future needs
Retail Leisure
Often regional –
support and fundraising
Potential impact by
store catchments
Likely impact on
discretionary spend

25.
Demographic Trends
Cost of Living dashboard – how our solution
underpins business planning requirements
• How will different scenarios impact
different segments of the population.
• Where do we expect spend to drop in
certain categories.
Likely impacts
Allows clients who licence Mosaic or Financial
Strategy Segments to map out likely impacts
on market and customer segments without
granularity of household predictions.

26.
1st party ingestion
and profiling
Once you understand your audiences are changing,
you need to know how to match and reach them
Experian can take your first party data and
profile it against Mosaic and other variables
so that you can identify, target and find new
customers across all channels.

27.
3rd party partner
data profiling
If you don’t have first party data, we can use
our partners to help you
Experian can take partner retail/panel
data and model it against Mosaic to help
you understand the audiences that buy
brands like yours.

28.
SOCIAL
DSP
Data is made available
via our data partners
Access to Experian Audiences
covering all major platforms
OTHER
DMP

29.
UK Audience ranking individual and geographic
Optimised
campaign metrics
CORE
STRETCH
OFF-
TARGET
Value driving audiences
Control bid and frequency for high value audience
Evaluate channels and tactics
that are driving these individuals
Suppress low value audiences
Minimise spend within activity
Lower or remove from retargeting
High
Mid
Low
Build audiences
Brand awareness and consideration
Balance cheaper leads to drive volume

30.
Access tools like our Segmentation Portal where
you can dig deeper into these groups

31.
Access tools like our Segmentation Portal where
you can dig deeper into these groups

32.
Or Audience Engine with full taxonomy to build and
export audiences for planning and activation

33.
Other Solutions

34.
Experian Audiences taxonomy data structure
• Automotive
• Business and
finance
• Sports
• Green vehicles
• Banking and
finance
• Football
• World Cup 22
• Family Travel
• E-sports
• Urban
• Insurance
• Staycation
• F1
• Travel
• Gaming
• Music and audio
• Personal finance
Interest
SEGMENTS
AUDIENCES
PILLAR
• Started university
• Just married
• First home
• Started career
• New parent
• Retired
• Changed job
Life stage
• Household data
• Education and
occupation
• Personal finance
• Gender
• Age range
• Marital status
• Societal group
• Employment role
• Home ownership
• Income
• WFH
• First-time buyer
• $100k–$149k
• Male/female
• Generation X
• Co-habiting
• ABC1
Demographic
• Consumer
packaged goods
• Apps
• Automotive
• Clothing
• Finance and
insurance
• Travel & tourism
• Non-edible
• Games apps
• Auto ownership
• Beauty
• New vehicles
• Used vehicles
• Cosmetics
• Van
• Coupe
• Green vehicles
• Women clothing
• Auto insurance
• Family travel
• Accessories
• Package holiday
• Scarf
Purchase intent

35.
Worry around the changes to people’s cost of living is high.
But perceptions show how consumers will be affected in different
ways – with a quarter being most adversely affected and will often
struggle to make ends meet.
But worry (and the impacts on consumers)
is not uniform and different pockets of society are impacted
differently. This means we need to consider our targeting more
carefully as the crisis unfolds.
Consumers are altering their spending as a result, but their
priorities vary. Non-essential items are being put off or delayed
and seeking cheaper alternatives is a strategy for some when
purchasing essential items. But comfort brands and activities that
will help people through the crisis will ride this storm.
It’s important to get ahead of the crisis
and start planning how best to shift your
marketing, as the information is out there
and being cost effective with budgets will be
critical for businesses that need to justify
every pound spent on marketing and
advertising.
We’re here to help with a range of models
and solutions that will give you or your
brands the tools to understand how best to
navigate the next years.
Key take outs we have heard

36.
Brendan Abbott
New Business Director
Brendan.Abbott@experian.com
Come and find us
for a chat or demo!
© Experian 2022. Experian Ltd is authorised and regulated by the Financial Conduct Authority. Experian Ltd is registered in England and Wales under company
registration number 653331. The word “EXPERIAN” and the graphical device are trademarks of Experian and/or its associated companies and may be registered
in the EU, USA and other countries. The graphical device is a registered Community design in the EU. All rights reserved. Experian Public.
Josh Torok
Strategic Agency and Partnerships Manager
josh.torok@experian.com

37.
Additional material

38.
We
know
data
Property and utilities
Demographics
Automotive
Finance and credit
marketing data
Charity
Shopping and
mail order
Travel
News and magazines
Television
Technology
and internet
Segmentations
Triggers
Mobile and email
Interests and hobbies
Consumer and
household level data
Permissioned
contact data
Meets stringent compliance
and privacy processes
Data and identities
linked across channels

39.
+50
million
adults
1.73
million
postcodes
26
million
households
Linked to research
panels e.g. YouGov
Linked to mobility data
e.g. visitor insights
Linked to 1st
party data

40.
Affluent city dwellers
with good prospects and
fast-paced lifestyles.
Professional, successful
families who are settled
in good-quality homes.
Growing families
balancing the demands
of careers and children.
Mature homeowners
with assets for a
comfortable retirement.
Salaried workers
in intermediate roles
earning average wages.
A
City
Advantage
B
Upmarket
Homeowners
C
Aspiring
Families
D
Affluent
Elders
E
Mid-range
Employees
Younger families with
modest incomes, raising
children on a budget.
City residents in high-
density, low-cost homes
making ends meet.
Senior couples and singles
living economically
in suburbs and villages.
Lower-wage earners
living and working in
large population centres.
Remote householders in
farmland or countryside
with limited services.
F
Family
Economy
G
Metro
Resilience
H
Ageing
Locals
I
Urban
Workforce
J
Rural
Community
And it isn’t just
UK insight…