What digital marketing means
The American Marketing Association defines marketing as the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Digital marketing is the same thing, limited to digital channels.
Digital marketing and online marketing are mostly used as synonyms. Those who separate them treat digital marketing as slightly broader, because it also covers channels that do not run through a browser, such as apps.
What sets it apart from traditional marketing is measurement. Whoever places an ad in a newspaper does not learn who read it. With an ad in Google Search, the platform counts impressions and clicks and, if tracking is set up, conversions too. That measurement has limits, covered further down.