Question-and-Answer Session
Operator
(Operator Instructions)
Our first question is coming from Rich Ingrassia - Roth Capital.
Rich Ingrassia - Roth Capital
A question about the Internet business in maybe a little bit more detail if you can. Beyond the content initiatives and the effect that they may have on traffic and engagement and in rate, can you speak maybe a little bit more detail on the potential diversification and enhancement of the revenue models, specifically what initiatives do you have in mind there, along the lines of ad network participation, video advertising, behavioral targeting, that sort of thing?
Susan Lyne
I can talk about the ad network initiative we began last month, but I want to be pretty clear here that our primary revenue stream is going to be advertising. We really are a two-revenue model business: advertising revenue, licensing revenue. And so we're going to stick to what we do really well. We do believe that because we have such robust and unique media products across publishing, broadcasting, and ultimately Internet, that we do have a different opportunity to really monetize that.
One of the reasons we brought Wenda Harris Millard into the company was to really take advantage of that. So we have, in fact, announced what we're calling Martha's Circle, which is a group of very high-quality site and blogs that everybody at our company feels are very in keeping with what we do and yet offer people the ability to go deeper into one or another niche area. We are selling that advertising around our Martha site.
But the largest growth we see going forward certainly for the near-term is going to be coming from marthastewart.com and from the Omnimedia sales of our magazines, television and Internet.
Rich Ingrassia - Roth Capital
On the magazine side, page growth has obviously been strong and easy to track your progress there. Can you maybe fill in a little more detail on CPMs, if not specific numbers, are we getting close to returning to 2002 levels now? If not, maybe when? And at what point do you think they normalize in '08 or '09?
Howard Hochhauser
To your point, as I was reading my speech, I wanted to point out something, we said that Living page growth will increase 12% and 8% for Everyday Food, and I wrote in, because it's an important point, that total publishing revenue will increase 23%. And the reason I did that is, what you see there is a big increase in total revenue in the publishing segment. So if total revenue is up 23%, ad revenue is up closer to 30%. So our rates, in our revenue on a percentage basis will increase approximately double.
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