Dollar General's retail media network DG Media Network is leveraging its massive physical footprint and growing digital capabilities to create a unique offering for advertisers seeking to reach rural and suburban America.

"The more I've learned about Dollar General, the more exciting it's been for me," said Austin Leonard, Vice President and General Manager of DG Media Network, during a recent EMARKETER webinar.

A "hidden gem"

Dollar General operates over 20,000 stores across 48 states, generating $40 billion in annual sales with 75% of the US population living within five miles of a location.

"Because we're more rural suburban, even though we have plenty of an urban footprint, most of the folks in the bigger cities where a lot of the media buying comes from, they don't go to DG regularly. So they don't know it," Leonard explained.

This massive physical presence gives Dollar General unique advantages in the retail media landscape:

• 20,000+ stores provide unparalleled proximity to consumers
• Expected presence in 16,000 stores with DG delivery by year-end
• Same-day and same-hour fulfillment capabilities

"We're building the last mile of ecommerce for the last mile of America," Leonard said, noting that many of the markets Dollar General serves haven't been able to take advantage of the e-commerce wave to the same extent as larger cities.

An offsite-first approach

Unlike most retail media networks that built onsite capabilities first, Dollar General Media Network began with offsite media activations, a decision that has proven advantageous.

"I think it gave us an early advantage and edge in developing mature offsite offering and audience extension capabilities," said Sean Tinnelly, DGMN's head of ad sales. "This approach allowed Dollar General to start migrating dollars from offsite to onsite and in-store infrastructure's evolution."

This strategy has positioned DGMN ahead of competitors who are just beginning to navigate the complexities of offsite retail media. The network now leverages this expertise as it expands into owned and operated channels, creating a more seamless experience for advertisers.

Bringing media to life

Dollar General is actively expanding its in-store retail media offerings, with signage, shelf tags, and categorical signs that create an omnichannel experience for shoppers.

"We're matching the digital message that they're seeing on site and we're driving and threading that needle to the in-store experience they have," Tinnelly said. "Signage to me is really not just a conversion point, it's also a brand awareness and a brand experience."

The company is also piloting audio advertising in 6,000 stores—a scale that exceeds the total store count of many retailers. Early performance results have been promising, according to Tinnelly.

What makes Dollar General's approach to in-store media particularly effective is how it complements existing shopper behaviors. The company's app serves as a critical tool for budget-conscious consumers who use it to build shopping lists, access digital coupons, and plan their trips before entering the store.

"For those shoppers that are on a budget, it really allows them to think through ahead of time, like, what do they want to do? How do they stretch their budgets? Or how do they just get the best value for the money?" Leonard explained.

Measurement rigor

In an industry where measurement challenges remain significant, Dollar General has prioritized transparency and standardization by aligning with IAB standards.

"All of our measurement practices are aligned to the IAB standards," Leonard said. "We know that transparency and performance-based partners are absolutely foundational to what we're doing here at DGMN."

Dollar General has joined the IAB as an official member, with Leonard taking a seat on the Commerce Media Board to help shape industry standards. This commitment to standardized measurement helps build advertiser confidence and addresses one of the biggest pain points in retail media today.

"We don't want to have black box methodologies or any type of metrics with KPIs that make folks feel uncomfortable," Tinnelly emphasized. "Being a part of IAB as well as doing our measurements through IAB standards is something that we think will strengthen our partnerships and relationships as we continue to grow."

Digitally savvy customers

A common misconception about Dollar General shoppers is that they aren't digitally engaged—a notion both Leonard and Tinnelly were quick to dispel.

"A lot of folks think of Dollar General as solely an in-store offering. We're really not. Our consumers are very digitally savvy. They're highly mobile, they're very plan driven," Tinnelly explained. "Millions of folks are actively using our app all day, every day, and digital coupon features before as well as during trips."

This digital engagement creates opportunities for advertisers to reach consumers throughout their shopping journey, from pre-planning at home to in-store conversion.

As Dollar General continues to expand its e-commerce capabilities and delivery options, the company is positioned to offer advertisers an increasingly robust omnichannel experience that reaches consumers across rural, suburban, and urban America.

"Dollar General's mission is serving others," said Leonard. "With the DGMN platform, we can help advertisers better serve our customers too, and we've got accountable media and great brand building."

Watch the full webinar.

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.

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