I am still stuck on what the demand and supply numbers mean. I thought you would want a larger demand (what people are wanting) and a lower supply (what people are finding) so that you can be the one who supplies what the customers are looking for.
This is a common misconception. Stick with the AG guidelines and you will be fine.
Demand > 2,000 (preferably >3,000)
2+ Keywords with Demand > 1,000
10+ Keywords With Demand > 100
Supply < 200,000 (sweet spot 20,000 to 60,000)
Also make sure that the search engines (SE), search intent for the keywords are the same as what you think they are. Some companies have a monopoly on certain keywords and this can skew the results. Or terms can have different meanings in different places.
Here's a post I wrote a while back explaining why the supply should be quite high for your site concept keyword.
Isn't the ideal supply 0?
This is a common misconception supply of 0 is not ideal for your site concept keyword.
Demand shows how many people are searching for a site so it's obvious that the higher demand the more people are looking for that information.
Supply is your competition so it seems that you would want as little competition as possible but that's not correct.
Your competition will also be the ones buying ads and supplying goods that you can sell on your site for a commission.
If there is no competition then it often means that there is no money to be made in that niche. So you need to look for a site concept that has healthy competition, the 'sweet spot' being between 30,000 and 70,000.
Once you have found the niche and made sure you can make money in that niche then you look for ways to position your site that is slightly different to what is already out there. There are gaps in any market brainstorm it helps us to find those gaps.
The tier 2 pages and tier 3's pages can and should have much lower supply but not your site concept keyword. There are exception to the rule (isn't there always). If you have found a new and upcoming niche that you are sure is going to get big or if you are selling your services in your local area. There are probably others where a low supply is okay, but in general you do need to have a much higher supply for your site concept keyword than 2,000.
I hope that makes it clearer,
Sweet spot numbers have changed since then but the principle is still the same.
This thread has some interesting points that may help you understand the process further. https://forums.sitesell.com/viewtopic.php?f=82&t=187195&start=0&
I hope that helps,