The landscape of digital marketing has undergone remarkable transformation, fundamentally changing how small and medium-sized enterprises (SMEs) engage in customer acquisition, brand development, and revenue generation (Digital Marketing Institute, 2025). This comprehensive investigation explores the multifaceted impact of innovative digital marketing strategies, artificial intelligence integration, and emerging technologies on SME performance across a range of industries (Mwaanga & Hapompwe, 2025; Lestari et al., 2024). By systematically reviewing recent research, analyzing empirical data, and examining case studies, this study investigates how SMEs can leverage advanced digital marketing frameworks to achieve sustainable competitive advantages in increasingly complex market environments (Unbounce, 2025).TFindings indicate that SMEs adopting robust digital marketing strategies realize average revenue growth of 51% in the initial two years, with social media marketing and search engine optimization identified as the most effective channels (Mwaanga & Hapompwe, 2025; Lestari et al., 2024). Additionally, the use of artificial intelligence in digital marketing has enabled SMEs to attain a 400% increase in return on advertising spend and a 30% reduction in overall marketing expenditures (Unbounce, 2025). The research highlights essential success factors such as data-driven decision-making, integrated multi-channel strategies, optimization of customer lifetime value, and agile responses to emerging technological trends.Key results show that SMEs using integrated digital marketing strategies achieve significantly higher customer retention rates (73% increase), expand their market reach (89% increase in geographic coverage), and improve operational efficiency (49% reduction in costs related to traditional marketing activities) (Lestari et al., 2024; Mwaanga & Hapompwe, 2025). This research adds to the expanding literature on SME digital transformation by offering a holistic framework for technology-driven growth, addressing implementation barriers, and providing actionable solutions for organizations with limited resources (Digital Marketing Institute, 2025).