Purpose: This study conducts a systematic literature review (SLR) to synthesize the existing body of knowledge on the geographic dimensions of digital marketing adoption among small and medium-sized enterprises (SMEs), with particular emphasis on urban–rural divides and regional inequalities.

Design/methodology/approach: Following the PRISMA 2020 guidelines, a comprehensive search of Scopus, Web of Science, and Google Scholar databases was undertaken for peer-reviewed articles published between January 2010 and September 2025. From an initial pool of 2,847 records, 78 articles met the inclusion criteria and were subjected to thematic and content analysis. The review is organized around the Technology–Organization–Environment (TOE) framework enriched with spatial and institutional dimensions.

Findings: The review reveals that digital marketing adoption among SMEs is geographically uneven, shaped by a complex interplay of infrastructural deficits (broadband availability, digital infrastructure quality), human capital constraints (digital literacy, owner-manager competencies), institutional environments (government support programs, regulatory frameworks), and socio-cultural factors (local market orientation, risk aversion). Urban SMEs consistently outperform their rural counterparts in adopting social media marketing, search engine optimization, e-commerce platforms, and data-driven advertising. However, the COVID-19 pandemic has served as a partial equalizer, accelerating adoption in previously underserved regions. Regional disparities between the Global North and Global South remain pronounced. The review identifies five thematic clusters: (1) infrastructure and connectivity gaps, (2) human capital and digital skills, (3) institutional and policy enablers, (4) market structure and competitive dynamics, and (5) pandemic-induced digital acceleration.

Originality/value: This is the first systematic review to explicitly map the geographic and spatial dimensions of digital marketing adoption among SMEs, integrating urban–rural and cross-regional perspectives within a unified analytical framework. The study provides a spatially enriched TOE model, proposes a future research agenda, and offers actionable policy recommendations for bridging the digital marketing divide.