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Dollar General wants to fill commerce media’s coverage gaps

As commerce media buyers face more choices, Dollar General is pitching its large store footprint as an opportunity to reach shoppers in rural and underserved markets, particularly with its retail media offering, DG Media Network.

  • 75% of Americans live within five miles of a store, according to internal data from the retailer.

"We're unique because of the massive scale that we have across the US, but we've also got coverage in markets that most retailers can't or won't build stores," said Austin Leonard, vice president and general manager of DG Media Network, on a recent episode of "Behind the Numbers."

Dollar General wants to convince advertisers to cash in with its media network by emphasizing its in-store scope, experimenting with new formats, and sticking to high measurement standards.

Proving in-store media’s value

In 2018, DG Media Network launched with in-store advertising rather than initially leaning into ecommerce. Reaching in-store shoppers is a top pain point for US retail media buyers (26%), according to a March Koddi survey.

“We started off-site and in-store first, so the ability to actually leverage the power of the data and closed-loop reporting was a big part of our strategy,” Leonard said.

The unconventional approach means DG Media Network “figured out the hard parts first,” said our analyst Sarah Marzano.

“‘We're going to monetize our on-site properties first’ isn't as challenging of a proposition compared to going off-site and in-store, where measurement gets a little bit tougher,” she said.

Combining digital and in-store tactics has helped the network refine its approach. Dollar General has in-store audio and shelf technology linking physical shelves to ecommerce touchpoints, and the retailer is experimenting with audio in about 6,000 stores, said Leonard.

  • 60% of Millennials and 50% of Gen Z in the US have purchased a product after hearing an in-store audio ad, according to a June Vibenomics survey.

“I think [audio] is a perfect way to layer in some of that messaging that can help influence the consumer's shopping experience in a way that doesn't feel disruptive,” said Marzano.

Embracing IAB standards

More effective and accurate campaign measurement is the top challenge for US retail media buyers, according to a March Koddi survey. To strengthen its commitment to measurement standards, Dollar General joined the Interactive Advertising Bureau (IAB) in November.

“We recognize that brands are dealing with a ton of complexity, and their CFOs are very tuned into their retail media investments and overall marketing,” Leonard said. “This means the accountability is on us.”

IAB standards will be crucial for “building a blueprint for retailers,” who are constantly weaving through pitches from retail media networks, said Marzano.

“Having that confidence and even being excited to invest because of the results is going to be such a crucial factor moving forward,” she said.

The general’s 2026 playbook

As DG Media Network looks to the future, it's focused on self-service options, expanding first-party delivery, and what Leonard calls "the last mile of ecommerce for the last mile of America.”

"We've got a clear mission to really spark change and accelerate opportunity in underserved markets," he said.

As the commerce media landscape grows, connecting these networks to broader business initiatives will be key, said Marzano.

“I'm very focused on how these media organizations that have been built occasionally in silos, because of the over-fixation on the online channel, are thinking through how to integrate more cohesively with their organization,” said Marzano. “That's going to be really crucial in 2026.”

This article was prepared with the assistance of generative AI tools to support content organization, summarization, and drafting. All AI-generated contributions have been reviewed, fact-checked, and verified for accuracy and originality by EMARKETER editors. Any recommendations reflect EMARKETER’s research and human judgment.

 

This was originally featured in the Commerce Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.

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