After using both directories and search engines I don't understand why anyone would use a directory over a search engine. I can see why you would get backlinks from directories but not traffic. Search engines are a quicker more directory and much less cumbersome than search engines when looking for informations. If you have another point of view on this please let me know. The average person does not even know what a directory is. Why are there so many considering what I just stated..
That's probably because search engines and directories are different things serving different purposes. I do agree that directories are hardly ever used, but still there are b2b directories providing relevant regional information on companies and services, which makes sense. Getting traffic from directories is virtually impossible, submitters only have additional linking in their minds (however effective that turns out in reality).
And thats mostly all you need to understand about a directory, one of the main uses is to gain backlinks, they are usually not for traffic, nobody ever said they were, its a general misunderstanding.
Niche directories can and do send traffic. Why? Because the good ones are not jam packed with over-SEO'ed sites that have MFA nonsense on them. A good example from my own experience...Christmas 2007 I was looking for ideas on how to make a wreath for our front door. Most of the sites in the top spots in Google had idiot articles like "Making a wreath for your front door is a great way to spread Christmas cheer. Your family can make a wreath from many different materials. blah, blah blah." Never did the articles actually talk about wreath construction or suggest materials. Now follow the category structure on a well-maintained Christmas or crafting directory to the wreath section. You should find sites that actually provide information that could be used to actually make a wreath or purchase a pre-made one rather than just talk about how nice they can be. Sure, my craft directory may only have a small handful of sites compared to millions on Google; but if I have listings on a topic, you will find exactly what you are looking for without having to waste your time with the MFA crap. General directories, at least the vast majority of them, should be viewed as SEO tools, pure and simple. Niche directories are also SEO tools but many niche directories will also provide highly-targeted traffic as well. Comparing directories to search engines is kinda like comparing WalMart or Home Depot with that home town, family-owned store that's been in business for generations. All of them offer paint but you won't have to walk 500 miles once inside the store to get to it and the customer service will be more professional and personal in the family-owned store. Both comparisons boil down to selection vs quality.