This study assesses the challenges and opportunities of digital marketing in Somali regional state of Ethiopia. We selected the sample purposively in this study. The collected data were analyzed by using descriptive statistics, regression model was also used to analyse the data. Quantitative data were used. The researcher collected the data with the help of questionnaire. The collected data shows that growing online markets, growing human capacity, growing telecommunication sectors and favourable government policies were digital marketing opportunities, the study also found that risk of privacy and security, e-payment accessibility, limited usage of computer technology, high cost of internet, frequent power disruption and lack of awareness are the challenging factors of digital marketing in Somali region. The findings also show the existence of positive attitude toward digital marketing in the study area. The study also witnesses that the current condition of digital marketing activities in Somali region is poor. The study shows that security and privacy, infrastructure, e-payment accessibility, and awareness have direct impact on digital marketing performance in Somali regional state. The study recommends improvement of government infrastructures, developing of e-payment systems and creation of awareness toward digital marketing