On the traffic estimator, it shows one of my keywords as 3.2 for Avg. Position. Does this mean that it will be shown as the 3rd advertisment on the first page, the second advertisement on the third page, or something different...? I've looked around the google help links, but didn't find anything useful, help would be appreciated as to where a 3.2 positioned ad would occur.
On the other hand, if you should decide to start advertising with AdWords, the statistics you'll see in your account are not estimates. Rather, they are a factual accounting of your actual average position, per keyword.
So, once you start advertising, your actual account statistics should always take precedence over what you see in the traffic estimator.
Just to further explain average position, here's how it works:
Let's say your ad has appeared three times, and it's shown once in 3rd position, once in 2nd position, and once in 5th position. Your average position, therefore, is 3.3
(3+2+5=10, and 10 divided by 3 = 3.3)
Makes sense?
AWA
Ah I see, thanks, it does make sense. I understand that they are just estimates, but to someone new to adwords and still experimenting with it, it's better than nothing ;)
I wouldn't guarantee that the estimates are better than nothing. Many AdWords veterans will tell you that the 'estimates' are next to useless. Take them with a BIG pinch of salt.
Your best bet is to do a test campaign, that gives (as AWA said) real data to go on.