By relying so much on factors such as keyword density which were exclusively within a webmaster's control, early search engines suffered from abuse and ranking manipulation. To provide better results to their users, search engines had to adapt to ensure their results pages showed the most relevant search results, rather than unrelated pages stuffed with numerous keywords by unscrupulous webmasters. This meant moving away from heavy reliance on term density to a more holistic process for scoring semantic signals.[13] Since the success and popularity of a search engine is determined by its ability to produce the most relevant results to any given search, poor quality or irrelevant search results could lead users to find other search sources. Search engines responded by developing more complex ranking algorithms, taking into account additional factors that were more difficult for webmasters to manipulate. In 2005, an annual conference, AIRWeb, Adversarial Information Retrieval on the Web was created to bring together practitioners and researchers concerned with search engine optimization and related topics.[14]

Clients often ask me the difference and I give them a simple answer that normally puts an end to the conversation and their questions, much like the answer shane thomas gave, but less detailed.  Direct is people putting in your url in the top and organic is people searching for you.  Here is an example: If I want to buy a book i type in amazon.com (direct traffic) but if i forgot where to buy a book online i search for "where to buy a book online" which directs me to amazon.com (organic traffic).  When i explain it like this, a light bulb goes off and they understand.  Hope that helps.
Billions of people search the web every day. Search engine marketing (SEM for short) is how you can get your ads in front of these future customers where it counts: in premium spots on the first page of search results. You set your own budget and are charged only when your ad is clicked. This makes SEM an affordable way to reach more customers for businesses of all sizes — including yours.
Search engine advertising (SEA) is an efficient and affordable online marketing strategy that helps your company website enjoy greater visibility by advertising on Google using varying methods. We differentiate between Google Ads, which are paid advertising, and the organic search results, whose ranking is determined only by the search algorithm. When you advertise on Google, text is displayed above, next to, or under the search results if it suits the search query, and is identified through the "ad" label. Aside from this, there is little difference between them and the snippets (text extracts from websites) in the middle. Ads on google are free initially; the clicks that the advert generates are billed. The price per click depends on your budget and how accurately your website is suited to the search query. As Google is by far the most used search engine in the US, search engine advertisement here is among the most profitable. AdWords is a program that Google uses to sell its adverts worldwide. With our tool you can invest in Google-AdWords campaigns in just a few clicks. The 1&1 experts can give you advice on finding the Google advertising plan that's right for your budget and takes into account the right keywords. With the right strategy for search engine adverts, you can then directly and efficiently target potential clients.

Although it may have changed slightly since BrightEdge published its report last year, the data still seem to hold true. Organic is simply better for delivering relevant traffic. The only channel that performs better in some capacities is paid search ads, but that is only for conversions, not overall traffic delivery (Paid Search only accounted for 10 percent of overall total traffic).

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