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.
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:

Here’s the thing. Your web visitors aren’t homogeneous. This means that everyone accesses your site by taking a different path. You may not even be able to track that first point of contact for every visitor. Maybe they first heard of you offline. But in most cases, you can track that first touch point. The benefit? You can meet your potential customers exactly where they are.
Additionally, there are many situations where PPC (a component of SEM) makes more sense than SEO. For example, if you are first launching a site and you want immediate visibility, it is a good idea to create a PPC campaign because it takes less time than SEO, but it would be unwise to strictly work with PPC and not even touch search engine optimization.
It takes skill to drive and convert traffic. If you do it yourself, it takes a significant time investment. If you outsource it, it takes a considerable monetary investment. Either way, you need resources. And you’re doing all this in a highly competitive space. Driving organic traffic is no longer just about deploying keywords. SEO is a lot more nuanced and complex than just targeting keywords. You have to consider different keyword types, the search intent of the user and the stage of awareness of your prospects. It takes time to see results.
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.
Immediate results. Businesses want instant gratification, and that’s completely understandable. While there are no long term benefits to PPC, you will see immediate results – as soon as your ads are approved, they will begin to appear in search engine results. As long as you set up your ad campaign correctly, you can have traffic flowing to your website that same day.
Encourage incoming links. Google prioritises sites that have a lot of incoming links, especially from other trustworthy sites. Encourage clients, friends, family members, partners, suppliers, industry mavens and friendly fellow bloggers to link to your site. The more incoming links you have the higher your site will rank. But beware SEO snake oil salesmen who try to trick Google with spammy links from low-reputation sites. Some links can actually damage your SEO.
Most organic sales (93 percent) take place through conventional and natural food supermarkets and chains, according to the Organic Trade Association (OTA). OTA estimates the remaining 7 percent of U.S. organic food sales occur through farmers' markets, foodservice, and marketing channels other than retail stores. One of the most striking differences between conventional and organic food marketing is the use of direct markets—Cornell University estimates that only about 1.6 percent of U.S. fresh produce sales are through direct sales. The number of farmers' markets in the United States has grown steadily from 1,755 markets in 1994, when USDA began to track them, to over 8,144 in 2013. Participating farmers are responding to heightened demand for locally grown organic product. A USDA survey of market managers. ERS research found that demand for organic products was strong or moderate in most of the farmers' markets surveyed around the country, and that managers felt more organic farmers were needed to meet consumer demand in many States. See the ERS report for more on this topic:
The term is intuitive; the definition of organic marketing refers to the act of getting your customers to come to you naturally over time, rather than ‘artificially’ via paid links or boosted posts. It includes any direct, instinctive, and , with the exception of paid marketing tools. Paid tools, such as artificial paid link-ads, are considered inorganic marketing. If you’ve been putting your blood, sweat and tears into revising and reinventing your user interface, maintaining Twitter and Facebook accounts, building your email lists, and improving your SEO, you’re doing it already. Now, let’s take a closer look at why it’s effective, and how you can do it better.
People find their way to your website in many different ways. If someone is already familiar with your business and knows where to find your website, they might just navigate straight to your website by typing in your domain. If someone sees a link to a blog you wrote in their Facebook newsfeed, they might click the link and come to your website that way.
Of course, there is a lot more that needs to be considered but this is a simple example of how all of these things work together. I would recommend having no less than one page for each step of the organic marketing plan if you are a small business. The larger your business the more planning that you should do. If you do not think through all the details you will miss something that will cost you.

Remember when you used to rely solely on search engines for traffic? Remember when you worked on SEO and lived and died by your placement in Google? Were you #1? Assured success. Well, okay, maybe not assured. Success only came if the keywords were relevant to your site users, but it was the only real roadmap to generating site traffic and revenue.

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