Consumer behavior, preferences and expectations have changed tremendously with the drastic increase in the use of internet during the last few years. This behavioral shifts among the consumers causes an immense impact on marketing scenario as well. The unimaginable growth in online shopping causes the companies across the world to show huge interest in digital marketing. All marketing efforts that use internet or digital technologies come under digital marketing. The emerging developments in digital marketing assist the companies not only to reach their audience but also help to build a strong and better connection with them. The main aim of this paper is to examine the various digital marketing opportunities and challenges businesses are facing in this marketing landscape. The study is descriptive in nature using secondary data from various sources. The findings of the study reveals that digital marketing has became an essential tool among businesses to connect with the current customers and target the prospects. The study helps to identify the opportunities and challenges in digital marketing today so that businesses can develop new strategies to leverage these opportunities and overcome the various challenges to completely adapt to the changing business scenario. The study also has several managerial implications that will help the companies to survive and succeed in the global market competition.