This paper deals with the digital marketing specifics and the contemporary trends and tools in it. The paper presents the features of the digital marketing and its comparison with the traditional marketing. The most important terms related to digital marketing, like marketing automation, Search Engine Optimization and the Zero Moment of Truth, are described. Furthermore, contemporary trends and tools in digital marketing, including social media, content marketing, mobile marketing, native advertising, right-time marketing, virtual reality and Internet of Things, are outlined. The paper highlights the relation between social media marketing and the content marketing. In the mobile marketing section, mobile apps and mobile permission marketing are the core subject, while in the Internet of Things section, wearable devices are pointed out. Also, in the paper are presented methods of the digital marketing efficiency measuring. Examples of successful and unsuccessful digital marketing implementation are presented at the end. The goal of the paper is to synthesize the knowledge of the digital marketing and the contemporary trends in it. The purpose of this research is to point out the importance of the digital marketing implementation in achieving and maintaining competitive advantages.