The purpose of the article is to highlight the specifics of the impact of digital marketing on increasing the competitiveness of domestic business from a practical perspective. It was determined that digital marketing in the context of increasing business competitiveness is a new stage in the development of marketing activities due to global digital transformation and changes in the business environment. It has been established that digital marketing tools allow business entities to solve a variety of marketing tasks. It was found that an important aspect of using digital marketing tools to increase the competitiveness of domestic business is the assessment of their effectiveness. It was determined that digital marketing creates a significant impact on increasing the competitiveness of domestic business. It was revealed that the main criterion for increasing the competitiveness of domestic business entities that use digital marketing tools is the improvement of management and the establishment of a feedback system between them and customers. Business entities usually need to choose digital marketing tools that can improve the efficiency of their business processes in interaction with partners and customers. Research has proven that content marketing, search engine optimization, search engine marketing, social media marketing, affiliate and influencer marketing, electronic and mobile marketing, and other digital marketing tools are effective digital marketing tools used to increase the competitiveness of domestic businesses. Digital marketing allows for the integration of multiple technologies (social, mobile, web systems, CRM systems, etc.) with sales and customer service, ensuring constant and high-quality communication between advertisers and end consumers. It penetrates traditional forms of communication to attract audiences and engage them in the virtual world based on the analysis of data about users and their behavior. In the perspective of further research, it is advisable to highlight the influence of digital marketing tools on the effectiveness of domestic business entities.