Podcast Summary: Scaling Retail Media for the Last Mile of America with Dollar General

Podcast: Behind the Numbers: an EMARKETER Podcast
Air Date: November 24, 2025
Host: Marcus Johnson (A)
Guests:

• Sarah Marzano (B), Principal Commerce Media Analyst, EMARKETER
• Austin Leonard (C), VP & General Manager, DG Media Network

Episode Overview

This episode dives deep into the rapid growth and unique positioning of Dollar General’s DG Media Network (DGMN) in the evolving retail media landscape. With an expansive store footprint covering underserved and mainstream markets alike, DGMN represents a distinctive model for how retail media can scale both in physical stores and digitally to reach what the hosts call "the last mile of America." The discussion explores DGMN's history, their in-store-first retail media strategy, unique approaches to measurement, challenges, and what’s ahead for 2026.

Key Discussion Points and Insights

1. DG Media Network’s Unique Scale and Mission

• Background: DGMN launched in 2018, leveraging Dollar General’s immense physical presence with 20,000+ stores, including recent expansion into fresh grocery.
• Mission and Reach:
  • "Dollar General serves as America's neighborhood general store... 75% of Americans live within five miles of a Dollar General." (C, 05:00)
  • The company opened over 500 new stores and remodeled over 4,000 in the past year as part of “Project Renovate” and “Project Elevate.” (C, 07:24)
• Underserved Markets: DGMN's network goes beyond typical retail locations, reaching markets other retailers don't, thus delivering valuable incremental audience reach.

2. A Non-Traditional Path to Retail Media

• In-Store and Off-Site First: Lacking a developed e-commerce platform until 2021, DGMN started with in-store and off-site media, which demanded innovation in managing and measuring physical tactics.
  • "We started off site and in store first. The ability to leverage data and closed loop reporting was a big part of our strategy." (C, 08:07)
• Shopper Marketing Tactics:
  • Shelf talkers, in-store signage, and connective shelf technology bring digital incentives to physical environments, helping shoppers save money and bridging offline with online. (C, 09:00)
• Innovation at Scale: With new pilots like in-store audio across 6,000 locations, DGMN brings “better together” effects by blending digital and in-store activations.

3. Measurement: Pain Points and Progress

• Industry Challenge:
  • “Measurement emerged as a top pain point for retail media networks as well.” (B, 14:40)
• DGMN’s Measurement Foundation:
  • Built using IAB standards, offering transparent, trusted return on ad spend (ROAS) figures and media metrics.
  • “The measurement has been built according to the IAB standards pretty much since day one...it builds confidence that when we report on incremental ROAS and those new buyers, that they know exactly how we're calculating the success.” (C, 16:07)
• Joining IAB: DGMN joined the IAB this month, signaling commitment to industry-standard measurement and transparency. (C, 17:44)
• Impact: Ability to run sizable “market match” tests due to store footprint, with cross-functional analytics teams ensuring the rigor of methodologies. (C, 19:35)

4. Integrating Digital and In-Store Media for Maximum ROI

• "Better Together" Effect:
  • Combining digital campaigns with in-store shelf signage led to a 27% increase in incremental sales lift and an average incremental ROAS of $4.66. (C, 11:21)
  • “When you use digital with the in-store tactics, they are better together.” (C, 11:09)
• Customer Experience:
  • Innovations like in-store audio are designed to be non-disruptive, enhance experience, and efficiently reach customers throughout varying shop trip types (stock-up, quick fill-in). (C, 12:59)
  • “Audio feels like such a natural fit. Consumers are used to hearing audio while they shop.” (B, 12:59)

5. 2026 and Beyond: Focus and Future Trends

• Strategic Growth:
  • DGMN serves as a “strategic growth lever” for Dollar General.
  • Focus areas: consumer-centric innovation, keeping shopper and advertiser value paramount, continuing investment in measurement and self-service tools, and automation for advertisers’ benefit. (C, 21:03)
  • "We have a clear mission to really spark change and accelerate opportunity in underserved markets." (C, 21:03)
• Omnichannel and E-Commerce Vision:
  • Building out “the last mile of e-commerce” and in-house delivery to bring digital advancements to traditionally underserved customers. (C, 24:24)
  • “We’re building the last mile of E commerce for the last mile of America.” (C, 24:24)
• Industry-Wide Trend:
  • As retail media organizations move from siloed to integrated models, the challenge is to “crack the physical store” and scale beyond simple on-site monetization. (B, 22:39)

Notable Quotes & Memorable Moments

• On Scale and Reach:
  • "75% of Americans live within five miles of a Dollar General..." (C, 06:16)
• On Innovation in Measurement and Trust:
  • "For the brands...transparency and the ability to build trust together...is part of the secret sauce of retail media." (C, 18:43)
• On the "Better Together" Effect:
  • "We got a 27% increase in average incremental sales lift versus the standalone tactic." (C, 11:21)
• On Organizational Support:
  • "Our CEO called us the linchpin of the digital strategy." (C, 24:15)
• On Piloting New Tactics at Scale:
  • “We’ve been piloting in store audio. It’s a pilot—it’s about 6,000 stores.” (C, 10:17)

Timestamps for Important Segments

• [04:13] – Introduction to DG Media Network: Scale and mission
• [07:24] – Store strategy: Remodels, expansion, maintenance
• [08:07] – Off-site and in-store as starting point for retail media
• [09:16] – Bridging digital incentives with physical stores
• [10:17] – Piloting in-store audio (6,000 stores); campaign measurement
• [11:09] – Data: Combining digital and in-store tactics = 27% higher incremental sales
• [14:40] – Industry-wide measurement challenges
• [16:07] – DGMN’s approach to measurement, adherence to IAB standards
• [17:44] – DGMN joins IAB for greater transparency
• [21:03] – DGMN 2026 strategic focus and vision
• [22:39] – Industry-wide retail media trends for 2026
• [24:24] – Omnichannel/e-commerce rollout; “last mile of America”

Tone and Language

The episode maintained a conversational, lighthearted, and collaborative tone. Both Sarah and Austin used a blend of humor and candor, celebrating wins but openly discussing industry pain points, especially around measurement and scaling retail media operations.

Summary Prepared For:
Marketers, retailers, and advertisers interested in retail media’s next phase, measurement standards, and strategies for reaching America’s “last mile” through both digital and physical innovation.