Future Commerce · 2026-09-02 · 40 min
Key moments - from our scoring
Substance score
63 / 100
Five dimensions, 20 points each
Dollar General Media Network (DGMN) has evolved beyond basic digital display to encompass multiple formats that create value for both shoppers and advertisers. Austin Leonard explains how DG's massive footprint of 21,000 stores across all 48 US states - particularly valuable in underserved rural markets where DG is often the only retailer - provides a unique foundation for retail media. The network spans in-store signage, website advertising, product search sponsorships, and programmatic audience buying. What sets DGMN apart, particularly with in-store audio, is the application of e-commerce-like programmatic optimization to a traditionally non-addressable medium. Rather than basic media plans and market tests, DG's audio network uses real-time inventory and sales data to optimize delivery - determining optimal dayparts (like 4 PM Thursdays for specific categories), targeting specific store counts, and dynamically adjusting across category shifts. This represents a maturation of retail media from pure performance metrics to story-driven creative that builds brand affinity through authentic voices like creators and influencers, measured through incrementality and market-share growth rather than just ROAS.
DGMN includes in-store signage, website and app advertising, product search sponsorships, programmatic audience buying through managed services, and in-store audio. It reaches advertisers across DG's 21,000 US stores with tools designed for both performance and brand-building campaigns.
DG's audio network uses real-time sales and inventory data to enable programmatic optimization - determining optimal dayparts, targeting specific store counts, and dynamically adjusting delivery based on category shifts and inventory availability, rather than running static media plans with basic market-match tests.
Audio engages shoppers during their in-store mission without requiring screen attention, leverages the cocktail party effect to cut through competing stimuli, is quick to produce and execute at scale across stores, and complements traditional signage while introducing shoppers to new products or reminders of needs.
Retail media networks are now using incrementality testing and market-share lift measurement to prove that advertising drives growth beyond reach to people who would buy anyway, combining this with creator and influencer storytelling that builds brand affinity alongside performance metrics.
Creators bring authentic storytelling and peer recommendations into the retail media mix, filling the mid-funnel consideration phase that was previously missed, allowing DG to deploy storytelling at scale with real measurement of sales impact rather than just brand awareness.
Our reviewer’s read on each dimension, with quotes from the episode.
The episode contains solid practitioner insights about in-store audio retail media and DG's omnichannel strategy, but significant portions are filler, sponsor reads, and conversational padding that dilute insight density. Austin's points about programmatic optimization in audio, same-day delivery logistics, and the Yellow Glasses partnership are substantive, but the episode lacks novel frameworks or deeply counterintuitive claims that would push toward 15+.
we've actually brought this programmatic e commerce like optimization and performance into a medium that typically did not have the ability to have that type of responsiveness, that reporting and measurement
half of those deliveries um you know we got about 80% of the orders that come in right now are they're paying an extra dollar to get that order within an hour and half of those orders are within 30 minutes
While in-store audio for retail media is relatively novel execution at DG's scale, the underlying concepts - retail media networks, creator partnerships, values-driven marketing, omnichannel - are well-traveled in the industry. The cocktail party effect discussion, though intellectually sound, is standard audio psychology. The episode recycles familiar frameworks (endemic vs. non-endemic, funnel stages, brand authenticity) without fresh reinterpretation.
Connect brands with customers in ways that are useful, relevant and additive to the shopping experience
it's someone who's authentically telling their story because they believe in it, not because they're a paid influencer or an endorser
Austin Leonard is a highly credible guest: VP and GM of a major retail media network overseeing operations, strategy, and execution for 21,000+ stores. He demonstrates deep operational knowledge, discusses real P&L trade-offs, and speaks to partnerships with major CPG brands (P&G, Coca-Cola, Kraft). This is a practitioner at genuine scale, not a consultant or commentator.
I'm the VP and GM for Dollar General's retail media network, and he oversees all aspects of the department from go to market strategy to media operations, insights, media sales, performance measurement, everything
we're in all 48 states of the mainland U.S. uh we reach many different types of markets, suburban uh urban and we're especially known for the rural markets
The episode includes concrete numbers (21,000 stores, 48 states, 7,500-8,500 sq ft stores, 10,000+ products, 18,000 stores with same-day delivery, 80% premium delivery adoption, 30-minute delivery windows) and named partners (iHeart, Bobby Bones, P&G, Kraft, Coca-Cola). However, it lacks performance metrics (lift percentages, ROAS figures, incremental sales data), detailed case studies, or specific advertiser results that would substantiate claims about campaign effectiveness.
we've got over 21,000 stores in the U.S. we're in all 48 states
at over 18,000 of our stores, you can get a delivery from the store within one hour and half of those deliveries um you know we got about 80% of the orders that come in right now are they're paying an extra dollar to get that order within an hour and half of those orders are within 30 minutes
The hosts ask reasonable setup questions and Philip delivers thoughtful transitions (cocktail party effect), but follow-ups are often soft and don't push Austin on hard tradeoffs. Hosts accept claims about measurement, creative effectiveness, and audience fit without requesting specifics, audit data, or acknowledging limitations. There's minimal productive pushback or disagreement; the conversation feels collaborative but not intellectually rigorous.
I really want this is where I'm going to do austin I'm going to do the future commerce thing and so I'll wax poetic for just one moment
what we've been able to do in the retail media industry as a whole is we've been able to really start to help connect all the different advertising tools that are out there
Computed from the transcript - who did the talking, and the words that came up most.
The next big advertising opportunity is here. The audio systems in Dollar General’s 21,000 stores connect shoppers with advertisers and drive loyalty. Austin Leonard, VP and GM of Dollar General Media Network (DGMN), sits down with Phillip and Alicia to explain why the retailer has doubled down on audio and the role that non-endemic advertisers play in his long-term vision. “The Cocktail Party Effect” Key takeaways: In-store audio is getting programmatic optimization so DG’s sponsors can serve ads at the best time of day and in the best-suited markets. Non-endemic only works in-store if it clears the near-endemic bar: shopper relevance. Dollar General’s 21,000 stores across suburban, urban, and rural markets are often the only stores in town, making its ad inventory a community utility. The Yellow Glasses Project pairs brand partners with the DG Literacy Foundation via iHeartRadio.
Transcribed and scored by The B2B Podcast Index.
Speaker A: Hello everyone, and, uh, welcome to Future Commerce, the podcast at the intersection of culture and commerce. I am not Philip, but I have Philip with me. I'm Alicia. Hi, Philip.
Speaker B: I'm Philip. Hey, how's it going?
Speaker A: I'm really excited for today's conversation because if you're a listener or reader, you know that we've been covering commerce media, retail media, however you want to define it. For the past few weeks now, we've had someone from IAB on the show, um, and dove deep into some new trends in the commerce media landscape, like vertical dramas and the creator economy. Um, so, so I'm excited to have someone on the RMN side, someone who's doing the work, working with partners and really exploring all these different trends. Uh, Philip, what about you? Um, what are your thoughts on how we're tackling this topic? Because I feel like it's so vast, evolving so quickly and there are so many things to talk about. But what are you excited to dig into today?
Speaker B: Well, I think one of the things that's often overlooked is the variety of formats that retail media can actually come in.
Speaker C: Right.
Speaker B: And, uh, I think a lot of it's just been focused on display and digital display for so long. And one way that I think we could probably zoom out is just think about all the formats and all the ways that people can interact with media media. For many years, if you go back 100 years, media was, you know, terrestrial radio. Um, and I think that our next guest has really taken that and made it very literal and thought about what does in store shopper experience look like when, when you can't physically look at your phone, but you still want to interact with media and actually deliver value over retail media? And how can you turn that into something that's really valuable and point to the other parts of the retail experience, like loyalty. Um, and then also think about how the values of the organization come through still in 2026, when I think a lot of companies have moved away from value centric messaging and thinking about what community and culture mean in light of all of that. And so I think that this really great. And also I think a lot of this conversation would play into our 2026 predictions, uh, about the directionality of value based retail. Um, so I'm really pumped for this in particular.
Speaker A: Me too. Arguably, I think the perfect person to be on the show to talk about all of these things, uh, it's Austin Leonard, and he's the VP and GM for Dollar General's retail media network, and he oversees all aspects of the department from go to market strategy to media operations, insights, media sales, performance measurement, everything. Um, he's also a pod. So I think we're gonna have a real pro on the show. Austin, thanks so much for being on the show and joining us today.
Speaker D: Setting the bar real high. We gotta deliver on that expectation that you just laid out there. Excited to be here.
Speaker B: Austin, real quick, I gotta ask you, uh, my kids make fun of my podcast voice. Do you have a podcast voice?
Speaker D: You know what? I, um, don't think that I have a podcast voice, but I do get, uh, I leverage a lot of the time spent in the podcasting world and some of the team meetings. So. So occasionally when I like to sign off a team meeting, I get a bunch of chuckles of people saying, oh, look, there's the podcast voice. So I haven't got it from my wife or my daughter Ava yet, but I'm sure it's coming.
Speaker B: Yeah, that's. Sometimes my kids prod me. They're like, do the thing, do the thing. I'm like, I don't even know what the thing is at this point. But, uh, it's a pleasure to have you. I think we will talk a little bit about how audio is, uh, impacting your business today. Uh, so, yeah, really pumped to have you. Thanks for being here.
Speaker A: Absolutely. Well, it's nice that your kids acknowledge that you are creating content, because I told my son I was on YouTube and he didn't believe me. So, um, here we are. But, uh, before we get into the audio side of things, Austin, which we definitely will, um, let's start broadly, because I feel like Dollar General is a great example of a retailer with such a vast footprint, so much presence through brick and mortar. Um, and you're building this ecosystem for digital media and digital advertising. So why don't you tell us about D. GMN more broadly and how you're creating value. And that's through the lens of both customers, the shoppers, but also advertisers. Like, how are you kind of building out this ecosystem to centralize that value across the board?
Speaker D: So DGMN has been built within the Dollar General ecosystem. And the part that I think is really important when you start thinking about our media network, is taking a step back and thinking about us as a retailer. And there's, uh, plenty of your folks that are listening, hopefully have heard Dollar General and been to Dollar General, but for those that haven't, you have over 21,000 stores in the U.S. we're in all 48 states, uh, of the mainland U.S. uh, we reach, uh, many different types of markets, suburban, uh, urban, and we're especially known for the rural markets that we reach because there are many markets and towns that we serve where we're the only store in town and we serve as a big part of that community. And so as we were building DG Media Network and thinking about all the different things we could do within our stores, uh, our philosophy is really simple. Connect brands with customers in ways that are useful, relevant and additive to the shopping experience. And as we've really been on this digital journey over the past couple of years, our app and our website have started to really mirror that so that we can make sure that we're bringing our customers relevant information, relevant deals, helping them find products, helping them solve problems like, hey, what's for dinner? Or hey, what am I going to do for the 15 kids that are coming over this weekend for this birthday party? So we serve a lot of different needs when you think about us as America's general store. And so as we've been building up the media network, we've been really tapping into what are the different tools that we know that traditional shopper marketing teams want to buy, like in store signage, um, being able to advertise on the website, sponsor product search, especially for some of the performance marketers, Programmatic buy in against our audiences or through our managed service. So using all the different tools, both that, uh, the industry expects, but also that we think we can do really well. And in summits we'll talk about that we're doing, you know, maybe, uh, out in front of the crowd or just we have the ability to do them more unique because of our giant retail footprint.
Speaker C: I've gone deep down the rabbit hole over the last few months in building custom AI harnesses and skills around foundation models to make Future Commerce better every single day. And that started at building a vector database and then a custom harness for us to be able to search Future Commerce's archives and to build a skill so that whenever we do anything for any kind of text search, we're searching Future Commerce's archives. And all of that relies on a foundation model. But when most of us think of foundation models, we're thinking of text generation. But text generation is not what AI is by default. Most people, when they are interacting with AI, are interacting with things that aren't primarily text. I saw a stat that 1 in 6 Google searches today are multimodal. Think about that for a second. One in six searches are a voice search or an image search or a camera search. Or some sort of search that's other than text entered into a box. So I think that the way that we're searching, uh, the modes that we are expecting to be able to search with are already changing. And that means our interactions online, our expectations for the interactions online are, are changing too. And so the foundation models that we use for driving those AI interactions have
Speaker B: to change as well.
Speaker C: And that's what makes me think about our new partner, eleven Labs. Because eleven Labs is the frontier lab building the voice layer for the next generation of customer experience voice agents. They are the frontline. They support, they sell, they guide, they answer a customer's needs, and they can get you from intent, they can get you to action, and they can do it in real time. And there are plenty of brands that are using 11 labs infrastructure to support millions of customers. Companies like klarna, who supports 35 million customers, and Revolut, who has deployed 11 labs agents to resolve issues eight times faster in as much as 30 languages. Brands from E commerce and retail and customer operations are building on 11 labs voice agent infrastructure. And for commerce. I think this matters so much because the best kinds of customer experiences have always been the ones that take place in a conversation. And that kind of conversation doesn't just happen on the sales floor anymore, it can happen anywhere. And so if someone shows up in your support channel, you still want your support channel, even if it's driven by an agent to be able to sell. And so now it finally can. Shopping, support returns, product education, international markets, anywhere the customer has intent, but the interface is getting in the way. That's what eleven Labs is building. It's one voice for your brand across multiple customer touch points and almost any language. And it's at real scale. So if you're thinking about what happens when customers are not typing, when they stop typing and they start talking, start thinking about 11 labs. Build the agent, give your brand a voice and meet your customer the way that they already want to be communicated with. So go to ElevenLabs IO FutureCommerce. That's ElevenLabs IO FutureCommerce. One voice for your brand across multiple customer touch points. That's elevenlabs IO futurecommerce and tell him Philip sent you. Let's get back to the show.
Speaker B: There's always the question, I think this is like the perma question on the advertiser side and certainly the meta conversation within, uh, you know, this industry, especially when we get into the uh, actual retail trade, uh, publication conversation, is, uh, how do we measure efficacy within, uh, Retail media. And uh, one of the things I think is really interesting that's happening right now is that this data driven mindset and transactional advertising, um, it seems to be giving way into um, sort of like giving, giving way into more integrated story driven advertising. I think we're seeing that quite a bit right now. Uh, I would love your take on it and maybe your lens. You have a lot of experience and I, I want to know why if you think that is happening maybe more broadly, ah, if you see that happening across the industry, if you think that there are brands um, that are sort of shifting away, um, why do you think that is? And then also know why are shoppers becoming more attuned to that storytelling? Uh, and why do we have to. Is is it just a form of having to stand out amongst a sea of sameness? Because I feel like that's what we've sort of been drowning in for the past five or six years which is just like a lot of performance marketing that tends to be samey samey. Is story the way that we stand out? I'm curious if you see something that uh, from your perspective.
Speaker D: Yeah, so let's start at the beginning of that because that's, that still dials back into the story driven part of what I think is really exciting in the creator and the influen marketplace that is really starting to explode and become a bigger part of our lives as consumers and as advertising professionals. And that is at the end of the day, especially for our partners that ah, who we partner together to get the products on our shelves and then into our customers hands, they want to know is it ringing the cash register? Are we driving sales? And what we've been able to do in the retail media industry as a whole is we've been able to really start to help connect all the different advertising tools that are out there. 2 Is it driving sales? And it obviously started with some of the basics like return on ad spend. Um, but we've also been very sophisticated and especially in some of the tools that we're able to use for on site and for off site to measure incrementality and that has really helped drive the industry forward because we can actually help prove that if you advertise with us and against this audience segment using this tactic that it's not just reaching someone that's going to buy your product anyway, but it's actually growing market share, it's driving growth. Now when you combine that with where we're in the social space and with creators, what I think is really interesting about how this is changing is that we're actually bringing a lot of that measurement back to a space that typically has been driven more by creatives and by more upper funnel brand awareness. Having creators and influencers is not new at all. Having them at scale because there's so many new platforms that anyone can be an influencer like you call at the beginning, anyone can be a podcaster. 10 years ago ago there, there was not nearly this amount of podcasting. But that's just because it's so easy to create content. And what we've seen is that customers, they definitely want to ask their friends, they trust people that can give them referrals versus only looking at ads. Ads certainly have their place in the ecosystem and certainly from a transactional standpoint, getting the right message in front of the right person at the right time is still a core value of, of retail media and what we're able to do at DG Media Network. But if you can start to actually engage them and have folks that really understand Dollar General and that they're big fans of ours anyway and they're able to actually share some of that content on a new product they found or how they were able to take, you know, three different ingredients and create this magical dish, I think those stories resonate more because they're, they're more engaging. So it's almost like there's this, this maturity curve in advertising in general is hey, you figure out the format and then you figure out how it performs and then you optimize the creative. Well, the creative is really starting to become a lot more important because you have more tools to build more engaging creative at scale versus the building a Super bowl ad takes a long time. It's a big bet. Yeah, you can build super bowl quality ads now very quickly and if it's your customers talking about you versus you talking about you, people are going to rely on that more and they're going to trust that more. So it's way more authentic
Speaker C: just on
Speaker B: a sort of reacting to that. I think one of the challenges, especially in the creator space for so long and having spoken to so many of them over the years future, uh, commerce also reporting on this is there's been an expectation in relationships with brands, especially in the affiliate um, relationship is that a lot of that top of funnel relationship has been uh, in brand centric, uh, uh, relationship with creators has been expected to be almost given away or done gratis and things that are done much lower in the funnel that is measurable, inherently measurable is Something that is more inherently transactional and is the thing that is able to drive dollars into a creator. I think now a lot of folks are trying to figure out what the mid funnel looks like and how you deploy, uh, creators in the mid funnel. And I think that is where the missing opportunity has been for a long, long time. I hear more people talking about that feel like that's where local communities who really actually have a story, they're not just folks that are in these, like mass media buys across affiliates being deployed at scale, you know, through agencies. It's actual people who have real stories to tell, who actually understand the products. And then you have a relationship or that you're forming with people who are storytellers who have a real, uh, authentic connection to the brand. That's where the real opportunity is. And I think that's what's being missed for so long is it's not top of funnel, it's not bottom of funnel. It's actually this thing in the middle that we've been missing for a long time. I think that that's, uh, where story actually comes in. Uh, this is where we spend most
Speaker C: of our time is in consideration.
Speaker B: Um, well, yeah, we're in all phases
Speaker D: of the funnel all the time, just right. But that, that middle connective tissue that you just call, I think is really important because it does. Not only does that mean that we're in consideration set, but it also can actually trigger us to actually get to the transaction because we didn't know the product existed or it reminded us that, hey, we do have a big dinner party coming up. Maybe we should get a little more creative. And here's an idea. So I think that's a great call out.
Speaker A: Yeah. And I think it ties to the opportunity for In Store Audio a little bit. Because, you know, if you're thinking about it through the lens of consideration, I mean, there's an intent to buy. Maybe they have an idea of what they want to buy or need to buy, but they need that further validation or support through the consideration process. And um, you know, your team has determined that In Store Audio is kind of that next big push for DG Media Network. So can you walk us through that decision strategically and really the benefits or advantages that, um, you found while assessing the opportunity for, uh, In Store Audio advertising, like what that really looks like for both the Dollar General brand, but also for your advertisers as well.
Speaker D: So as consumers have been on the journey of becoming way more digitally focused on shopping, and not just the actual shopping part, but Doing their research, planning their trip. The feedback that we got a lot from our advertising partners was this stuff is great, we love this. But what else can you do in the store? What else can you do when they're in that shopping mindset? And as I said before, we've got a lot of the traditional tools. There's signage which serves a very important function in the store for our shoppers and for our advertisers, helping them highlight new products, highlight weekly promotions, pricing changes. There's a lot of things that those do, but those take a lot of time. And those are things that while they're really important, they also can be expensive to scale across 21,000 stores or even if you want to target 5,000 stores. And as we looked at our stores specifically, uh, We've got about 7,500, 8,500 square feet is the average store size for us. So it's actually a good space where We've got over 10,000 products in there where our shoppers are coming in and they're on a mission. Now some of that mission could be a super quick turn like hey, I just want to get a snack and a Coke and I'm out. Or it could be, um, it's a weekly stock up trip so I'm going to spend some time in there. But I know exactly what I need. So I'm going to hit the three aisles that I know and on my way out I'll grab that, that snack and a drink still. But what we're finding is that there's an ability to help introduce them to something that maybe they didn't know that we carry or something that they didn't know that they needed but reminded them. And traditional signage can do that. But what we found is we're looking at as the in store audio, especially with the size of our stores. It gives us an opportunity to really tell that story in a way that is quick to produce. Uh, it's also with the way that we've set it up, it's actually fast to execute the campaigns. And the big gap within store audio previously has been typically how it's sold and how it's operated. So you'd say, hey, I want to reach this amount of stores. And you do a pretty basic media plan. You'd run it, you'd run a market match test and you'd say whether or not there was lift in sales. Well, um, for dg, in Store Radio Network, part of the reason that we really lean into this and we think this is a huge path forward for us, as, as a partner to our brands and also as. As an additive to the shopping experience is in between all the great music that we're playing that helps the shopping experience is we've got technology that's built in so that when we're building a media plan for our advertisers, we can actually tell them, hey, the best time for you to advertise is 4 o' clock on a Thursday. And you want to do these 3,700 stores because that's where you have inventory that's available. And then once we run the campaign, it actually will optimize across the sales performance that's happening, uh, across the inventory that's available. If there's a category shift that's happening, it'll actually optimize across the delivery across multiple stores. So we've actually brought this programmatic e commerce like optimization and performance into a medium that typically did not have the ability to have that type of responsiveness, that reporting and measurement.
Speaker A: And.
Speaker D: And because it's an audio format, it's also something that is actually really engaging in a different way to customers versus a typical sign or a digital ad.
Speaker B: I really want to. This is where I'm going to do Austin. I'm going to do the future commerce thing. And so I'll wax poetic for just one moment. Or philosophic. Um, there's something called, um, the cocktail party effect, um, for those who haven't heard of it all sort of like explain it is your brain has this ability to, uh, selectively focus on things when you have, uh, a ton of stimuli happening. Um, and that's what we call attention. Right? And so, uh, I find it fascinating that we walk around now. We're all lo fi girl, or I'm telling on myself, probably everybody's walking around with headphones in. Like we're all living in our own little world at any given time. Even in retail, like, we're walking around, I see people walking around. They're, you know, wherever they happen to be and they just have their headphones in until something interrupts it. And the cocktail party effect is you hear someone say, oh, I'm. Yeah, I went to school in Columbus. And then you like, snapped out of whatever it is you were doing and you're like, you hear it from across the room and your attention focuses on something that was just coming in amongst all the chatter and you snap into something that like caught your attention. And your brain has the ability to just zoom in on things like that even if you were focused on something else. And this is the power that I think audio has that nothing else has, is that it can catch your attention even when you're focused on something else. It can zap you out and say, wow, I didn't know that was happening. Even if I have my AirPods in, even if it's on, uh, you know, the max setting of noise cancellation, I can still hear it through and now I'm paying attention. Now I'm pulled out of my, whatever it was I was selectively focused on. And that's a thing that I don't think you get in any other information dense environment. You don't get it on TikTok. You don't get it on uh, like an Amazon style marketplace where you have a lot of, you know, rich density and text. Because ad blindness is a real thing. This can only happen in this particular type of a format. And I think that this is really interesting because it cuts through literal noise, but it cuts through noise and it's hacking into a certain type of a way that we tend to look for attention and opportunity and once we want to find those things. So I find that really fascinating. I'd love to see, uh, I don't know if you've done any studies on how this is working or how it, uh, you know, other ways that it's driving, um, uh, you know, success. But I, I really feel like this has the, has a lot of psychological backup as to why people would pay a tremendous amount of attention despite all of the other things that would be going on. I've now spoken way too long on this particular effect.
Speaker D: Oh, uh, I love it.
Speaker B: I'm fascinated about things like this because nobody is doing stuff like this. Right. And it reminds me of the blue light special. Right. It's the kind of thing that we need more of because everything's been Muzak for too long or Katy Perry or Sarah McLachlan.
Speaker D: Um, yeah, no, totally fair. Uh, and I'll future commerce you up one more level. Yeah. Audio is so powerful because it's one of the only tools where you can actually use it to help tell a story inside someone's head. So when you're watching a video, you're watching TV or you're reading, you're actually looking at what someone is presenting to you when you hear it. Your brain will actually then build the image of the story that that person is telling you in your head because of that. Uh, that's just how our brains work. So that's why audio can be so effective. That's why when you listen to your favorite song. It can change your mood, it can help you adjust. And the power of audio when you're telling the story about your brand, once you've got a great brand voice, you can tell that story in so many different places. And to your point around the cocktail party, like you may have heard this brand voice in many other places before. And then when you're in that buying mindset in the store and you hear that same voice again, it triggers that, that need state, slash that interest because you uh, already have that association with the brand and then it can help you drive the sale. And at the end of the day, our job is to be one of those key partners to help build your brand and to drive sales. So that's why we think audio is a really interesting format. That candle is underrated in advertising in general, but specifically for where we see ourselves, we think it's a big differentiator, uh, not just because of the size and scale, but also because of the way that our stores are set up that that audio can really come through.
Speaker B: I'm curious, there's been a lot of debate around endemic, non endemic and other digital formats. I'm curious what you think about how that might work in audio format. And I know that you have partnerships um, around this, like with iheart, um, that sort of enable, empower some of these types of relationships. Tell uh, us a little bit about how uh, this is working today, how it might work tomorrow.
Speaker D: Yes, retail media, there's a lot of chatter around, hey, you know, we're doing a great job with our endemic partners. You know what, how do we get into those non endemic budgets? Well, when you think about the big websites that are out there, those are, they have a very specific purpose to inform and to drive a sale. So when you bring a non endemic message into there, it better be what I like to call it, near endemic. So it better be very relevant to that shopper or else you risk a couple things. One, you're going to upset your merchandising team that has worked so hard to help drive the sale on that mission where they're trying to fill that basket because that person might click off and then, hey, they might get distracted and not continue their checkout. However, when you're in the store and you're in that shopping mindset, you're already in that buying mode that gives you an opportunity for us to bring in things that we think are important to our customers and that maybe they can't buy directly in the store or they can't buy at all but it's important, you know, what uh, are they going to do to fill up their car on their drive home? What are they going to do if they're looking for a new credit card or a new bank? There's also so many different entertainment opportunities. There's new movies coming out. This is a great format to help entertain and bring some of that content to life in our stores. It gives us the opportunity to help actually have a medium that allows us to bring advertising, um, inventory to places that they typically wouldn't have looked before. But we know that that shopper is engaged because they're in the store and especially when they're in the buying mindset helping to talk about their cell phone bill or help save them some money on their cable bill. That's something that they might be in the, in the mood to talk about because they're trying to get through their shopping list at the same time, uh, save money so that they can actually buy more groceries or be able to do, you know, buy a treat for themselves. So long, long and long winded answer. But I think that it gives us an ability to bring in advertisers that we wouldn't normally have on our website, but to bring them into our stores because they're important to our customers and we think that our customers are important to them. So it gives them an opportunity to, to find a new inventory channel that they haven't been able to tap into before.
Speaker B: Wow.
Speaker A: Well, and I think there's something to be said, Austin about you know, bringing in these different advertisers or partners that relate to the broader context of consumers lives. It's not just about winning that specific moment when they're in the store. It's about driving that long term recall and long term purchase potential. Um, even though that may be a few more touch points down the line beyond that initial store visit. And what I find really exciting about Your partnership with iHeart in particular is how it ties to those broader community driven um, initiatives. So you've partnered with them for the Yellow Glasses project which is tied to uh, the DG Literacy foundation which uh, is very core to the brand mission, brand values and your, your broader goal of connecting to communities. So why don't you tell us a little bit about that side. You know, how these partnerships and your, your move into these new storytelling vehicles is really allowing you to bring those um, those more values driven initiatives front and center to the customer experience.
Speaker D: So the part that is awesome about this story is that this is a part of what DG does that we typically don't get to talk about as much. And it's near and dear to our heart because it's a thing that we can bring back to our communities that really helps them and helps us bring new opportunity for them. Obviously the ability not to be able to read can limit your career and can limit your enjoyment of life. And we believe that the Yellow Glasses Project specifically is that media can be a force for good. So this, the initiative raises uh, awareness around the issues that are out there still around literacy and the educational opportunities that are available. And specifically what a lot of our brands that want to partner with us who again they've been partnering with us for years on this of um, how can we help tell this story more? And for this year we felt like this was a great opportunity to integrate those brands into this larger campaign. And Bobby Bones specifically, who's. He's the number one country music DJ in, in the US and for folks that, that don't listen to country and that most, maybe some of the listeners on, on the coast, they don't know who Bobby Bones is. Well, he's got a massive following. Millions of people listen to him every single morning. And he also grew up very, very impoverished. He also grew up, wow, um, you know, having learning challenges where this is a cause that's near and dear to his heart. So when you, when you kind of marry together, all of the things where he grew up in a small town where Dollar General was the only store in his town. And he has built through hard work and working his butt off and help as he, as he would say. His story really resonates with us because it's the story of many of our customers who are working really hard out there and that we think with Yellow Glasses Project and with the DG Literacy foundation that we can help give back to the, the communities. And so when that combination came together, obviously part of what we were looking for is we've got this new in store radio network we're trying to really promote. How do we grow and drive that our brands, they want to partner with us on um, things that matter to our customers. And also this is something that is very much unique to Dollar General. So we said, uh, what can we do to actually tell this story better? And working with iHeart, we built this nationwide campaign. It's the first national media campaign that we've run to help promote the DG Literacy foundation and Yellow Glasses Project specifically. And with Bobby as the spokesperson, we think we can reach millions more people than we ever have before. We can drive more donation. We can help people that are coming to our store know that for $2 they can buy the yellow sunglasses and help support the cause. And it's what we think is back to the top of our conversation. It's someone who's authentically telling their story because they believe in it, not because they're a paid influencer or an endorser. And we think that was such a perfect match. We, we had, you know, our friends from P and G and from Income who are big partners with us, they bought into that. And so it's actually helping to raise the awareness. It's also helping to make sure that it's given back to our communities. So I could talk about it for a long time. In case you couldn't tell, I'm very passionate about it. And it's not just because the radio is fun and gives us that medium, but it's also something that we think is really having an impact on our communities.
Speaker A: That's amazing. No, and I love this because I feel like one of the recurring themes that we've been touching on, I mean obviously everybody's talking about automation and AI, um, how to achieve scale, but I think you hit on it. The role of purpose and this proof of humanity. It's kind of the connected, uh, red thread that kind of brings all of these different touch points and modes of storytelling together and that's what makes it so powerful. That's what allows you to really connect and relate to all of these communities that you're serving. And I feel like that's kind of been a recurring theme even indirectly throughout the course of our conversation. So I mean to ask more directly, Austin, like, how are you in the team ensuring this proof of humanity or even proof of human investment? Um, how do you ensure that that's kind of integrated into everything that you're bringing to market? Whether it's a purpose driven campaign tied to something like the Yellow Glasses project or even something more, uh, directly commerce related, such as back to school or even holiday. Like how are you kind of bringing those, those storytelling elements together to really let that humanity of the brand shine?
Speaker D: I think first and foremost it comes back to our customer. So we do a lot of work to understand what's important to our customers. What's top of mind right now, what's going to be top of mind when it gets into fall versus in November versus in the spring. So a lot of what we do is very tied together with how do we make sure that the moments in our customers lives that matter we're showing up for to help either uh, support them, help celebrate them, help get them through that, if that be the case. And so as we're thinking through those programs and m working with our brands is what are the needs that we can solve and then also how do we celebrate those life's little moments? Sometimes the afternoon snack hour is just a great way to treat yourself. And it's the ability to tell that story and show up when they need it is the authentic piece. Now Dollar General overall, our job is to help save our customers time and help save them money. And because we have a very unique place in the ecosystem where we've got a unique audience. And again, sometimes we're the only store in their town that gives us the ability to, to serve many more millions of people and play an important role into those moments. So we think about those as we put together the programs, as we put together, you know, what are the things that we can build bigger partnerships with folks like Coca Cola or Kraft. And that's, that's a key part of, of how we bring that to life.
Speaker C: If you run operations or fulfillment at a growing brand, you already know this to be true. The customer just does not care where the marketing department ends its journey and the operations team takes over. Because if the order arrives late or maybe tracking is not updating, or the unboxing experience does not live up to their expectations, that is a brand level problem and usually that becomes your problem because that is your job. And shipfusion wanted to give operators a better way to understand how their fulfillment experience actually compares to the rest of the market. So they placed and audited hundreds of actual real life DTC orders and they looked at everything from checkout and shipping to delivery and unboxing. And then they turned all of that research into the DTC Fulfillment experience quiz. It's 16 questions, it takes five minutes and it gives you a benchmark for where your operation is strong and where there's a gap for the customer experience experience that's breaking down for you right now. And let's say that fulfillment is becoming a constraint on your growth. Ship Fusion is giving Future Commerce listeners three months of free fulfillment when you partner with them. I can't think of a better way of getting started on BFCM than doing that right now. So start your journey by banking your operation@shipfusion.com futurecommerce that's shipfusion.com futurecommerce. Take the DTC fulfillment experience quiz. Sixteen questions, five minutes. Get a benchmark for where you are and get three months of free fulfillment when you partner with them. But you gotta use our link shipfusion.com
Speaker A: futurecommerce yeah, I will say personally, our local Dollar General is right next to my son's karate studio. So we go every time. Once a week after karate, we'll stop in there and get him like a little treat or a little prize or if it's the holiday season, we'll even do some pre shopping for, you know, all of his cous. So, um, I can speak directly to how this brand is part of our community and it's part of our routine. Um, and we're releasing this kind of at the tail end of Back to School, which is big for so many, if not all retailers. And there's been a lot of discussion around how to win the value driven consumer and how to capture those moments of opportunity. So as we think about, you know, how Back to School did and what that means for holiday, like, have there been any preliminary learnings or things that you're seeing or hearing in the market that um, you think is worth calling out, especially related to all these different touch points and modes m of storytelling that tied to the media side?
Speaker B: Yeah.
Speaker D: Well, first of all, Alicia, thank you for your business. We appreciate you as a customer. I hope you're hope. Kyle loves going down the toy aisle and uh, finding something extra.
Speaker A: Always, always find something.
Speaker D: Trust me, my daughter Ava, she can find something every time as well. Uh, if you haven't signed up for a MYDG account yet, you definitely should. Uh, there's lots of great ways to help, uh, save some money and also potentially find another new item in there for him. I would say that generally speaking, because we're in the value channel, uh, I think that a lot of uh, the advertising world out there puts us in a specific box. I think generally speaking everyone is looking to save more money and also to save time. So when you break those up, what we're definitely seeing is that there's a lot of new shoppers that are experiencing Dollar General and they're, they're experiencing them. Whether it's because it's a new store that we just added to the marketplace or we've just done a renovation and elevated their local store. Um, but there's a lot of people that are discovering Dollar General for the first time. We made it almost all the way through future commerce without even talking about E commerce, which is crazy. But we have been on a journey over the past couple years where we are now an omnichannel retailer. So at over 18,000 of our stores, you can get a delivery from the store within one hour and half of those deliveries. Um, you know we got, we have got about 80% of the orders that come in right now are they're paying an extra dollar to get that order within an hour and half of those orders are within 30 minutes. And so when you think about saving people time, saving people money, uh, half of the, you know the, the advantage is, is obviously making sure that you don't have to get in your car and drive to the store. The other half right now with how expensive gas is, it actually saves them a trip where they're not spending their own gas money and they can get really great values on the products that they want to buy and also not have to leave the house to do so. So we're super excited about that journey that we're on and being able to deliver that value. I uh, do call that the last mile of E commerce for the last mile of America because it is also bringing a lot of that commerce to folks and the advantages of having same day delivery that they haven't been able to get to before. Uh, because of how many different and unique markets that we serve.
Speaker B: I mean this is where uh, a lot of the conversation I think often gets overlooked as we uh, so much of the conversation in what has become E commerce centric conversation. And I'll save the soapbox for another time when you're not here. Austin has really just become DTC and meta centric conversations about how uh, about $300, you know, pants, um, for you know, wannabe luxury brands that are drop shipped from somewhere else. And I feel like that we've really lost the plot on what E commerce can be and how we can serve diverse markets. Um, and I, I really feel, I really appreciate being reminded that there is a, a whole uh, most of the world's interaction with commerce is through retail. Um, and we since the pandemic have so many channels in which we interact with that retail experience. Ah today and it serves everybody. Um, I think we forget that a lot especially in, in these types of conversations. Uh, we're always wanting to like push the boundaries on the future. Um, but people like you are still doing the work and serving everybody and I think that, that you know, we forget to commend that work. So really appreciate the reminder.
Speaker D: Yeah, well that's, it's not me that's doing a lot of the work in those stores. So a huge shout out to all of our team members that are out in our stores. The thousands of people that help make sure that, that Dollar General is open when Alicia wants to come after karate practice and make sure that they get a treat. But it's an important part of people's lives. We do love to shop now. E commerce makes it easier, sometimes it can make it faster. But at the end of the day we still enjoy the shopping experience and, and the in store retail shopping experience is an important one.
Speaker B: Uh, if we were to look ahead, you know, uh, can't be called future commerce without talking a little bit about the future. But uh, what do you think is the next era of retail media in general? I mean you're, you're around a lot of folks who are leaders in the space. You yourself probably you're a thought leader, you're looking out into the future. Um, what, what do you think is next?
Speaker D: Yeah, that's a great question. So most of that what's next conversation comes back to retail media standards, which you know, I know you had the IB on here, um, very recently and we partnered with them. Uh, DG joined the uh, IAB last year for the first time. So we're super excited to help contribute to what we're building there. I do feel like the, the consumer tools that are out there with AI, especially when you think about, you know, ChatGPT and Claude and the different ways that we can help solve different problems and where they can discover uh, new products and new ways to shop those products. I do think there's a lot that has a lot of potential to provide more value to customers. So I think you'll see a lot of us on the retail media side looking at that space. But also, you know, I, I think that the next year of retail media is really about accountability and also telling our story for our unique audiences. There's, there's a lot of chatter around there about the things that are wrong and sometimes you don't give ourselves enough credit for how complicated it is to do what we're doing. So I love that we're already meeting the retail media standards that are out there and I know a lot of my retailer friends out there, uh, at other retailers are also trying hard to help deliver on the brand's expectations. But I also do think that there's a lot of opportunity for making it easier to buy into the audiences that you'd like to reach on the retail media side and also to continue for other brands that aren't endemic to the space to figure out how to tap into that audience. It's not just a play for non endemic budgets. It's also, uh, a new way for them to engage unique audiences in unique places. So in store is definitely on everyone's mind of how do you take that great audience and that great ecosystem to build on? So I think there's a lot of things that I just rambled about on there that's for the future, but there's so much opportunity here that, uh, it gets me excited.
Speaker B: Yeah, that's a lot of opportunity. It sounds like there's a lot of work to do still. Right. Um, and a lot of maturity. When we were talking with the iab, I think a lot of the conversation that we were talking about the challenges in an agentic future, how does that change the nature of the advertising and for, uh, an agentic shopper, uh, and the. And the intent of an agentic shopper? I think there's a lot of conversation around that right now. And a lot of fear has been, uh, uh, you know, ballet about, but I don't know that it's all necessary. But I think it just changes the nature in which we're thinking, uh, about ad creative. I think it's the nature in which we're surfacing offers, um, because the nature in which people shop and the way that we find intent for the shopper is changing and all of that has to be, you know, it's being done differently in the future than it is today, probably. Um, and I love that. I love when things change, when you change the rules, uh, then we have to adapt. Um, and I think that's good. It's good for the industry. It's good for us to have to not get set in our ways because that's. The disruption never stops coming. Uh, Austin, what a pleasure. Loved having you.
Speaker A: Yes, it's great.
Speaker D: Yeah, absolutely. Philip, Alicia, I've really enjoyed this as well. Um, and excited to finally be on here. So if my return invite's already been extended, you know, I'll accept it.
Speaker B: It absolutely is. And just, uh, a reminder, he is the vice president GM for Dollar General's retail media network. Uh, Austin Leonard. Where can people find you?
Speaker C: Online?
Speaker B: I think you have some thought leadership out there. And podcasts, where can they get that?
Speaker D: Yep, I'm on LinkedIn. Uh, AustinLenard. You'll find me there. And, uh, hopefully you'll get to see a lot of what I'm doing there and get sucked into that LinkedIn algo. Because we're really busy. We're announcing a lot of things, but LinkedIn's the best place to find me.
Speaker B: Great. And dgmedianetwork.com has, uh, some of the latest over there. Uh, and thank you all for tuning
Speaker C: into this episode of Future Commerce.
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