Organic or Natural listing: Organic Listing is that when a result comes in search Engine Result pages (SERP) with free of cost. Each person want their website must come in organic listing when a user enter a query relevant to their website. For this purpose SEO is very important. Webmaster mainly focused on the organic listing.
Sponsored Listing or Paid Listing: Sponsored Listing is not free and this is paid. The paid listing including the concept of PPC and CPC
PPC is Pay Per Click and CPC is Cost Per Click
Actually their are mainly three Search Engine using the following Sponsored Listing:-
Google using Google Adwords
Yahoo Using Yahoo Ads
Microsoft (Now Bing) Microsoft adCenter
Example of Sponsored or Paid Listing:
Google Adwords for Google Search Engine, which are not including in the organic listing. Usually it appears on the top or at the right hand side of the Google Search Engine Result pages.
Following Picture can show difference between Organic Listing and Sponsored Listing

The ads appear in the right hand side and at the top of the search engine result pages are called as the Google Adwords (Sponsored Listing)
The Sponsored Listing using the concept of Paid Inclusion and Paid Placement
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