The article discusses the impact of digital marketing on modern entrepreneurship, as well as the main tasks in the formation of the business structure. Predictions of rising consumer power in the digital age leading up to the turn of the century were bolstered by the advent of the Internet and then reignited by social media. Changes in consumer behavior require firms to rethink their marketing strategies in the digital sphere. Currently, much of the related research focuses more on the client than the firm. This study uses the firm’s perspective to facilitate understanding of digital marketing and the use of social media, as well as its benefits and inhibitors. The second generation of Internet applications enhances marketing efforts by allowing firms to introduce innovative forms of communication and co-create content with their customers. Firms ’ participation in digital marketing can be classified according to the perceived benefits and uses of digital marketing. To improve engagement with digital marketing, marketers need to focus on relationship-based interactions with their customers. This article demonstrates how some firms are already achieving just that.

The article describes the problems and criteria for the development of marketing in the era of the digital economy. In the structure of the digital economy, the process of modifying marketing into smart-marketing (digital-marketing) happens - work that allows the use of digital advanced technologies. Thus, by analyzing “Big Data” and applying other achievements of advanced technology, it is possible to influence the compilation of needs, as well as develop and promote value propositions for consumers on the market. The article uses methods - general scientific method, i.e. analysis of world experience in transition to absolute digital economy, implementation of digitalization in all types of activities; philosophical method - is based on analytical and statistical conclusions about digitalization of economy and its impact on other activities; analogue method - the same forecasts about digitalization of marketing were taken from the theory of digital economy and its direction. As a result, based on the SWOT analysis, leaning on the strengths, weaknesses, threats and opportunities, it is possible to understand that the digital economy undoubtedly affects marketing.