Digital marketing and social media are two fundamental concepts that have profoundly transformed the way businesses interact with their customers. Particularly in the retail sector, the role of social media has become increasingly strategic, with brands actively leveraging social media platforms to reach their customers, foster loyalty, and enhance the customer experience. The transformation driven by social media in the dynamics of retail has gained extensive attention in the literature, emphasizing its critical role in securing a competitive advantage and fostering brand loyalty. This chapter evaluates influencer marketing within the context of promotional activities conducted by individuals who can reach large audiences through social media. The literature extensively discusses the powerful impact of influencer marketing on influencing consumer behavior, enhancing brand awareness, and guiding purchasing decisions. Influencers enable brands to establish more personal and sincere connections with their target audiences through trust-based relationships they cultivate with their followers. However, for this strategy to be effectively implemented, it is emphasized that issues such as the use of fake followers, ethical concerns, and transparency must be addressed. The impact of digital campaigns on customer engagement has emerged as a key area of research in contemporary marketing literature. Social media platforms provide spaces where direct interaction with customers can take place, real-time feedback can be gathered, and two-way communication is encouraged. In this context, a successful digital campaign not only aims to promote products but also seeks to enhance customer loyalty and maximize customer engagement. Interactive content, user-generated content, and personalized messaging play a significant role in increasing customer engagement. These topics offer valuable insights that contribute to the effectiveness of marketing campaigns and enrich the existing literature. In conclusion, the influence of digital marketing and social media on marketing strategies is evolving rapidly alongside changing consumer behaviors and technological advancements. This book chapter aims to contribute to the literature by examining the role of social media in the retail sector, the power of influencer marketing, and how digital campaigns enhance customer engagement. The process by which brands adapt to this new marketing paradigm is critical for achieving a sustainable competitive advantage. The objective of this chapter is to analyze the effects of digital marketing and social media strategies on the retail sector, evaluate the contributions of influencer marketing to consumer behavior, and investigate how digital campaigns increase customer engagement. While deeply assessing the role of social media within marketing dynamics, the chapter aims to provide significant contributions to the literature by revealing how these strategies can create a competitive edge for brands and influence customer loyalty.