DAVE GLAZA: WHAT ACTUALLY DRIVES RETAIL MEDIA GROWTH
From Merchant to Media: Dave Glaza on What Actually Drives Retail Media Growth
DIGITS CEO Dave Glaza shares insights from the Beyond the Shelf podcast on retail media strategy, regional grocers, paid search, measurement, and AI-driven product discovery. Learn what works in 2026.
Retail media has no shortage of buzzwords, platforms, and promises. What it often lacks is perspective from someone who has lived on both sides of the table. In a recent episode of Beyond the Shelf, Dave Glaza, Founder and CEO of DIGITS, unpacked what truly drives growth in retail media today. From his early career as a Target merchant to launching one of the industry’s most respected independent retail media agencies, Dave shared hard-earned insights on how brands can win visibility, scale intelligently, and avoid the traps that stall performance.
Most retail media conversations focus on platform features, technology capabilities, and reach metrics. What gets overlooked is the operational reality brands and retailers face every day: finite shelf space, constrained budgets, merchant priorities, and the challenge of coordinating media investments across fragmented retail landscapes.
Dave’s perspective is different because his experience is different. He spent over a decade as a Target merchant responsible for curating physical shelf space before transitioning to digital and launching Target’s Cartwheel loyalty app. That combination of merchant discipline and media innovation shapes how DIGITS approaches every client engagement today. This podcast episode translates those insights into actionable strategies for brands navigating retail media in 2026.
Key Takeaways at a Glance
Merchants are not trying to sell ads, they are trying to sell units. Retail media works best when aligned with merchant goals
The shift from top-down mass marketing to bottom-up behavioral influence changed how brands can drive individual shopper actions
Most retail media budgets underperform because brands confuse familiarity with effectiveness and lack dedicated testing budgets
Regional grocers represent untapped opportunity, with many competing head-to-head with Walmart in their markets
Paid search remains the foundation, with 66% of the top nine slots at Target now paid placements
Offsite media tied to retailer data is gaining momentum when used to drive incremental traffic, not just retarget existing shoppers
Measurement is evolving beyond ROAS to focus on new-to-brand, new-to-category, and share capture metrics
AI-driven product discovery will reshape how brands compete for shopper attention in the next three years
Why Does Dave’s Merchant Background Still Shape DIGITS’ Approach?
Dave’s retail media philosophy starts with one simple truth: merchants are not trying to sell ads, they are trying to sell units.
Before founding DIGITS, Dave spent more than a decade at Target, most of it as a merchant responsible for physical shelf space. His job was not to say yes to every brand with a great pitch, but to curate an assortment that fit within finite space and delivered results. As Dave described it, “I was a buyer that had a 24-foot run. You could talk to hundreds of brands that had great product, but at the end of the day, it’s got to fit on 24 feet of shelves.”
That experience still defines how DIGITS works with brands today. Retail media works best when it aligns with merchant goals, not when it operates as a disconnected media tax. When brands understand the constraints merchants operate under, campaigns become more relevant, more trusted, and ultimately more effective.
What Shift Changed Everything for Dave?
One of the biggest changes Dave highlighted was the move from top-down mass marketing to bottom-up behavioral influence.
During the launch of Target’s Cartwheel loyalty app, Dave saw firsthand how digital actions could drive physical behavior. “We can send a push notification, and within about four hours, we have 50,000 people walking through our doors because there was a deal on something,” Dave explained. That moment reshaped how he thought about marketing forever.
Retail media is powerful not because it reaches everyone, but because it reaches the right shopper at the right moment. The brands that win are the ones that understand how to influence individual behavior, not just buy reach.
Why Do Most Retail Media Budgets Underperform?
According to Dave, many brands struggle with retail media for one core reason: they confuse familiarity with effectiveness.
When budgets tighten, brands default to what feels safe. Paid search, top retailers, repeatable formats. While these channels are essential, over-concentration limits growth.
“I would say our most diligent partners do carve out the budget to always be testing,” Dave noted. “Whether that’s 10% of their budget, 20% of their budget, something that they’re testing that needs to earn more dollars, that then might become a bigger piece of their portfolio in the next planning window.”
Without intentional testing, retail media becomes maintenance, not a growth engine.
What Is the Overlooked Opportunity in Regional Grocery?
One of the most important themes in the episode was the untapped power of regional grocers.
Dave challenged the idea that brands should only focus on their top three or five retail accounts. In many markets, regional grocers compete head-to-head with national giants and command deep shopper loyalty.
Using Schnucks as an example, Dave explained: “They compete very closely with Walmart on a market share basis. If you’re only talking through Walmart’s RMN, you’re literally walking away from half the town.”
DIGITS has built a significant part of its business helping regional grocers launch and scale retail media networks that actually work for brands. The goal is not fragmentation, but coordination. Brands should be able to reach shoppers wherever they buy, not just where spreadsheets say reach is highest.
What Is Actually Working in Retail Media Right Now?
Despite constant innovation, Dave was clear about what still drives the majority of results.
Paid Search Remains the Foundation
“At Amazon, paid search is such a huge percentage. Even at Target now it’s 66% of the top nine,” Dave noted. “You need to be playing in paid search, otherwise you’re not really even just listed.”
At many retailers, sponsored listings now account for the majority of visible shelf space. If brands are not investing there, they are effectively invisible.
Offsite Media Tied to Retailer Data Is Gaining Momentum
Offsite media returns have been increasing, especially when used to drive incremental traffic rather than retarget existing shoppers. DIGITS has seen strong performance from brands and retailers investing in this channel.
Influencer and Social Commerce Formats Are Evolving
“Influencers is what everybody wants to be better at,” Dave observed. “But that model for super large-scale CPGs just hasn’t quite been figured out at scale yet.”
The opportunity is real, but execution matters. Most P&Ls for candy, cereal, and household essentials have not been optimized for TikTok Shop influencer campaigns. That will change as engagement and shopper behavior continue to shift toward these platforms.
How Is Measurement Evolving Beyond ROAS?
ROAS is no longer enough. Dave noted that while return on ad spend remains table stakes, brands and retailers are increasingly focused on deeper signals of growth.
“A lot more of our RMN partners and our brand partners are leaning into other metrics around new-to-brand, new-to-category, and what percentage they’re winning within those,” Dave explained.
For regional retailers especially, keeping up with changing measurement expectations is challenging. This is where experienced partners matter. DIGITS helps translate complex data into clear business decisions that both brands and retailers can align around.
What Is the Next Frontier in Retail Media?
Looking ahead, Dave sees AI-driven product discovery as one of the biggest shifts coming to retail media.
Shoppers are no longer starting their journey on a retailer search bar alone. They are asking AI tools what products to buy before they ever reach a store or site. Dave used the example of first-time parents: “If somebody’s having their first baby tomorrow, they’re probably going to ChatGPT or some other type of AI engine to figure out what their product stack is.”
That changes everything. Brands that win in the future will be those that understand how to show up in these discovery moments. Content, education, and credibility will matter as much as bids and budgets. DIGITS is already piloting ways to help brands prepare for this shift, because discovery is becoming the new shelf.
Why Does DIGITS Exist in the Middle?
Throughout the conversation, one theme was clear: DIGITS does not see itself as a tech company or a media seller. It is a business services partner that sits between brands and retailers to help both sides win.
“We like to think of ourselves as tech agnostic,” Dave explained. “We’re more of a business services firm.”
By staying tech-agnostic and retailer-focused, DIGITS helps reduce fragmentation, unlock budget, and build retail media strategies that actually drive growth instead of adding complexity. This approach has allowed DIGITS to work with regional grocers on Instacart Storefront Pro, proprietary platforms, and legacy ecommerce systems without requiring clients to rebuild their tech stacks.
What Should Brands Do Next?
Dave’s journey from merchant to media leader gives DIGITS a perspective that many agencies lack. It is not about chasing every new platform or trend. It is about understanding shoppers, respecting merchants, and building strategies that scale with purpose.
Invest in Paid Search Strategically
With 66% of top placements now paid at Target and similar dynamics at other retailers, paid search is no longer optional. Structure budgets, reporting, and governance around it.
Carve Out a Testing Budget
Allocate 10% to 20% of retail media spend to experimentation. Test new formats, platforms, and regional partnerships. Without testing, growth stalls.
Expand Beyond Top Three Accounts
If you are only investing through Walmart, Target, and Amazon, you are walking away from significant category sales at regional grocers and mid-market retailers. Map where your shoppers actually buy and invest accordingly.
Prepare for AI-Driven Discovery
Product content, FAQs, and educational materials need to be optimized for AI platforms that are becoming the new front door to product discovery. Start building this capability now.
Partner with Agencies That Understand Both Sides
Work with teams that have merchant experience, not just media experience. Understanding how retailers think makes campaigns more effective and budgets more efficient.
Action Steps
To translate Dave’s insights into actionable strategies for your brand:
- Audit Your Retail Media Budget: How much is allocated to paid search, testing, and regional retailers? Are you over-concentrated in familiar channels?
- Map Your Category Sales by Retailer: Identify where your shoppers actually buy. Are you investing in retail media at those accounts?
- Establish a Testing Budget: Reserve 10% to 20% of spend for new platforms, formats, and regional partnerships.
- Optimize Product Content for AI: Review your PDPs, FAQs, and educational content to ensure they perform well in AI-powered discovery experiences.
- Connect with DIGITS: Schedule a consultation to discuss how DIGITS can help you reduce fragmentation, unlock budget, and build retail media strategies that drive measurable growth.
Frequently Asked Questions
Why does merchant experience matter in retail media?
Merchants are focused on selling units, not selling ads. Agencies with merchant backgrounds understand how to align retail media investments with merchant priorities, making campaigns more relevant, trusted, and effective.
What is the biggest mistake brands make in retail media?
Over-concentrating budgets in familiar channels without carving out dedicated testing budgets. Brands confuse familiarity with effectiveness, which limits growth and prevents them from discovering new opportunities.
How should brands think about regional grocers?
Regional grocers compete head-to-head with national retailers in their markets. If you are only investing through Walmart or Target, you are walking away from significant category sales at regional accounts where your shoppers buy.
What measurement metrics matter beyond ROAS?
New-to-brand, new-to-category, and share capture metrics are becoming more important as retail media matures. These deeper signals show whether campaigns are driving incremental growth or just shifting existing demand.
How is AI changing retail media?
AI-driven product discovery is reshaping how shoppers research and purchase products. Brands need to optimize content for AI platforms like ChatGPT that are becoming the new front door to product discovery.
Conclusion
Retail media succeeds when it stays grounded in one question: does this help sell more product? Dave’s journey from merchant to media leader gives DIGITS a perspective that many agencies lack. It is not about chasing every new platform or trend. It is about understanding shoppers, respecting merchants, and building strategies that scale with purpose.
That is how brands win visibility. That is how growth actually happens.
Ready to build smarter retail media strategies? Connect with DIGITS to discuss how we can help you reduce fragmentation, unlock budget, and drive measurable growth.
Resources:
- Target Managed Services
- Regional Grocer Retail Media
- DIGITS Retail Media Services
- Beyond the Shelf Podcast
About DIGITS Agency
DIGITS is an omnichannel retail media agency specializing in Target, regional grocers, and alcohol retail media. As a Target Managed Services partner and Roundel Media Studio Certified agency, DIGITS helps CPG brands navigate retail media with strategic planning, hands-on campaign management, and proprietary analytics. Learn more at www.digitsagency.com.
Dave Glaza, Founder & CEO of DIGITS, remains committed to bringing digital capabilities to physical stores!
LinkedIn: https://www.linkedin.com/in/
