As a SEO analyst the fact that recent changes Google has made has made it hard for websites to rank scares me a bit but on a second thought I see a lot of opportunity here for growth. Because as SEO gets more challenging true meaningful strategies are now needed to optimize a site rather than just link building and basic on page. SEOrs really need to understand the nature of a client’s business, work on their buyer’s persona & understand their clients Goals. I am a big fan of Point #2 & #3 you highlighted under potential solutions. Local businesses (LB) really need to setup up and take full advantage of Google My Business (unfortunately I don’t see many LBs doing that). With point #1 i.e. demand generation, I am bit confused about how that strategy will unfold for small businesses. This would mean a lot more investment from their end on building their brand equity and brand awareness, but some businesses don’t really have that kind of funding. I mean yes, they can implement aggressive social media strategies and take advantage of GMB but that will still be very challenging I feel. Maybe a bit more information on how we can generate demand for small businesses be helpful!
In February 2011, Google announced the Panda update, which penalizes websites containing content duplicated from other websites and sources. Historically websites have copied content from one another and benefited in search engine rankings by engaging in this practice. However Google implemented a new system which punishes sites whose content is not unique.[35] The 2012 Google Penguin attempted to penalize websites that used manipulative techniques to improve their rankings on the search engine.[36] Although Google Penguin has been presented as an algorithm aimed at fighting web spam, it really focuses on spammy links[37] by gauging the quality of the sites the links are coming from. The 2013 Google Hummingbird update featured an algorithm change designed to improve Google's natural language processing and semantic understanding of web pages. Hummingbird's language processing system falls under the newly recognised term of 'Conversational Search' where the system pays more attention to each word in the query in order to better match the pages to the meaning of the query rather than a few words [38]. With regards to the changes made to search engine optimization, for content publishers and writers, Hummingbird is intended to resolve issues by getting rid of irrelevant content and spam, allowing Google to produce high-quality content and rely on them to be 'trusted' authors.
Search Engine Optimization (SEO): Maximizes search result exposure by targeting and driving Web traffic and ultimately delivering increased sales. The majority of search engine page results come from unpaid or organic search. SEO optimizes websites to ensure top search engine placement, such as Google, as only 15 percent of searchers continue beyond page one.
For a long time, digital marketers summed up the properties of direct and organic traffic pretty similarly and simply. To most, organic traffic consists of visits from search engines, while direct traffic is made up of visits from people entering your company URL into their browser. This explanation, however, is too simplified and leaves most digital marketers short-handed when it comes to completely understanding and gaining insights from web traffic, especially organic and direct sources.

Well, yes and no. Sure, you can get hit with an algorithm change or penalty that destroys all your traffic. However, if you have good people who know what they are doing, this is not likely to happen, and if it does, it is easy (in most cases) to get your visits back. Panda and Penguin are another story, but if you get hit by those it is typically not accidental.
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