Google claims their users click (organic) search results more often than ads, essentially rebutting the research cited above. A 2012 Google study found that 81% of ad impressions and 66% of ad clicks happen when there is no associated organic search result on the first page. Research has shown that searchers may have a bias against ads, unless the ads are relevant to the searcher's need or intent 
Publishing quality content on a regular basis can help you attract targeted organic search traffic. But creating great content that gets ranked higher in the search engines isn’t easy. If your business doesn’t have the necessary resources, developing strong content assets can prove to be a challenge. Which affects your ability to have a working content strategy.
Organic marketing, of course, is different from outbound or paid marketing. Outbound marketing seeks to place advertising and promotional content in front of people who are not looking for it. In our era of big data, the ability to target advertising has blurred the line between in and outbound marketing slightly. Paid marketing is good at generating traffic when it is needed. However, organic marketing will continue to provide leads over time without the need to continue to spend on advertising.
The last thing you need to do is evaluate the results and simply do it all over again. You will need to be constantly reassessing your organic marketing plan. The situation, audience, and goals will be constantly changing. Your marketing plan will need to change to adapt to this flux. You should reevaluate your organic marketing strategy at least every quarter.
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!
Search Engine Marketing or SEM encompasses the steps taken to increase relevant traffic to your website, through higher rankings on search engines. Traditional SEM is made up of two processes: “organic” search engine optimization (SEO) and pay-per-click advertising (PPC) (or cost-per-click (CPC)). However, the field of SEM is a changing and expanding field thanks to constant new developments, such as:
In 2014, BrightEdge published research that showed that 51% of channel traffic came from organic search and that it was far and away the largest channel. In the intervening years there were significant search algorithm changes that dramatically altered the layout and ranking of the search engine results pages and saw an increase in the space taken by Local, Videos, Images, Ads, and Quick Answers.
Now, it is not that these sites are not interested in Google users. In fact, they have hired us to help them increase their share. However, they are getting so much traffic from sites like Facebook that it seems there is less urgency about attracting this traffic and less willingness to change the site to meet organic standards. Not long ago, sites would urgently and unquestioningly abide by Google’s standards to court that traffic.