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Thanks for the insight,
Scott
The Green Monster
The numbers on that tool don't make much sense to me, either. The only truly accurate measure of 'web search volume' is your own logs :) And those are suspect, as well.
Think of it this way: Google reports that 1/2 of all queries through their system occur only 1 time in that month, which means the vast majority of clicks and searches are not going to be for 'widgets' but 'generic widget online location' or something that effect.
That being said by way of disclaimer, my general rule of thumb is that for a 'non competitive term' it could be the net wide traffic is at least double, up to 5 or so times what the tool says.
For a 'competitive term' (like widget) there might be 1/2 or less...because of the inflation of people marketing for 'widget' and position checking, etc.
Hope that helps, cheers.
However, if you estimate word by word you will never get the right number - your have to research in "themes" to estimate precisely. If you count the total number for a group of keywords in the same theme you will get a pretty accurate estimate - statistically speaking.
This means they claim to have some kind of listing on 85% of search result pages generated. Tall order when Google (IMHO) is generating 20% under its own branded site.