Dollar General’s recent announcement that it is expanding its in-house retail media network, DG Media Network, marks a pivotal moment for off-price retailers entering the lucrative world of digital advertising.
The move aligns with broader industry trends as budget-focused chains like Dollar Tree, Family Dollar, and other regional discount retailers intensify their digital transformations, both in e-commerce and retail media.
A Growing Footprint in Retail Media
DG Media Network, originally launched in 2018, has been gradually scaled in recent years. It offers a suite of marketing solutions ranging from on-site and email advertising to connected TV, digital out-of-home, and social media integrations through partnerships with platforms like Meta.
The latest expansion signals Dollar General's intent to formalize and monetize its significant reach—over 20,000 stores nationwide, primarily in rural areas often underserved by traditional digital marketing.
DGMN’s growing capabilities reflect an effort to offer targeted marketing solutions to consumer brands eager to reach new demographics.
Notably, Dollar General’s customer base includes over 75% rural U.S. counties, allowing advertisers to engage with segments largely missed by retail giants like Walmart and Target. The company has also partnered with rewards apps like Fetch to integrate purchase-based incentives and improve attribution accuracy.
Following the RMN Trailblazers
Retail media networks first gained widespread attention with Amazon’s launch of its advertising business in 2012.
The retail giant’s ability to leverage shopper data for ad targeting transformed the e-commerce advertising landscape.
Walmart followed with Walmart Connect, while Target developed its own RMN, Roundel. These platforms have since evolved into high-margin operations, offering brands the ability to place advertisements directly where buying decisions are made.
According to Bain & Company, RMNs offer profit margins exceeding 50%—a stark contrast to the tight margins of traditional retail. This has enticed a growing number of retailers to develop RMNs as a supplemental revenue stream, especially as third-party cookies decline and first-party data becomes more critical for advertisers.
Dollar Stores and E-Commerce: A Laggard No More
Historically, off-price and dollar-store retailers have lagged in adopting e-commerce, largely due to business models that emphasized in-person visits, low overhead, and high store density.
However, the COVID-19 pandemic accelerated the shift in consumer expectations and behaviors, pushing even the most reluctant retailers to invest in digital channels.
Dollar Tree, for example, launched its Chesapeake Media Group in 2021, focusing on digital-first ad solutions.
Like DGMN, Chesapeake Media Group leverages first-party data from Family Dollar’s 14 million Smart Coupons users to deliver personalized campaigns.
Strategic partnerships with Swiftly and Aki Technologies have further helped reduce the technological barrier to entry by offering plug-and-play digital advertising infrastructures.
These moves mirror broader changes in the off-price segment. While e-commerce still represents a smaller portion of total revenue compared to traditional mass merchants, dollar stores are now increasingly experimenting with online ordering, localized delivery, and mobile couponing—essential foundations for building effective RMNs.
A Scalable and Strategic Play
Implementing an RMN requires significant investment in data infrastructure, analytics, and digital inventory. Yet off-price retailers are using cost-effective, scalable strategies to bridge this gap.
By outsourcing or partnering with advertising technology providers, they can enter the market without the overhead burden carried by larger retailers.
Their value proposition lies in specificity and reach. Unlike Walmart or Amazon, whose RMNs cast wide nets, off-price retailers offer highly targeted access to low-income, rural, and deal-seeking consumers.
This unique demographic positioning makes their ad space appealing to brands looking to diversify reach and drive sales where other channels have less traction.
In addition, the emphasis on off-site advertising—placing ads on third-party platforms using the retailer’s shopper data—enables these companies to extend campaign reach without heavily modifying their own web infrastructure.
The Road Ahead
As off-price retailers double down on digital, their RMN efforts are no longer experimental—they are strategic necessities. Dollar General and Dollar Tree are carving out a niche in a competitive and rapidly evolving advertising ecosystem by focusing on underserved markets, scalable platforms, and differentiated consumer insights.
The push into RMNs marks a clear inflection point in off-price retail’s digital journey. No longer lagging behind, these retailers are leveraging their unique assets—dense store networks, loyal shopper bases, and cost-conscious brand identities—to catch up in e-commerce and capitalize on one of the most profitable trends in retail today.
Their belated but intentional transformation suggests that retail media networks may become the next great equalizer in a historically uneven digital playing field.
