On April 24, 2012 many started to see that Google has started to penalize companies that are buying links for the purpose of passing off the rank. The Google Update was called Penguin. Since then, there have been several different Penguin/Panda updates rolled out by Google. SEM has, however, nothing to do with link buying and focuses on organic SEO and PPC management. As of October 20, 2014 Google has released three official revisions of their Penguin Update.
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While organic search may drive many times more traffic to your site than paid search, you can use this report to see the quality of traffic driven by each method. For example, if you look atSite Usage statistics, you may see that organic search delivers 20 to 30 times the number of visitors, but those visitors view only half as many pages and have twice the bounce rate. And when you look at Ecommerce statistics, you may see that visitors from paid search have a much higher rate of transactions, along with a higher average value per transaction, and a higher dollar value per visit. If you find that your visitors who arrive via paid search represent a significantly higher value customer, that may be an argument to invest more in paid search.
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).