I do not understand fully what you mean here. A blog is good for onsite seo, if you wanted to rank for a new keyword but it's not listed on your website, you can do a post about the keyword and linkbuild to the new blog post. It's a complicated process for seo link building but onsite, that's...
Without knowing your website or the keywords your targeting it would be near impossible to pinpoint why your traffic went down. I can assure you if you were penalized by Google, you would lose your traffic from the search engine.
Yes what he said ^. Social media is important but for best results you need to include social media and link building. Not from fiverr though, that seo will do more harm than good.
You need offsite seo as well as onsite seo. If you're getting traffic from organic searches through google, your seo needs improvement. Maybe you're not targeting the right keywords. Let me know if you need assistance.
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