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Media All-Stars 2008: OMD’s Director, National Radio is on a Mission to Improve Accountability

November 10, 2008

By Katy Bachman

It is ironic, considering her deep roots in radio, that Natalie Swed Stone fell into the business somewhat by happenstance.

Starting her career in research at the CBS Television Network, Swed Stone, OMD’s director of national radio and this year’s Media All-Star for Radio, pored over the overnight ratings, and later took a TV research job at NW Ayer.

TV, it seemed, was her destiny.

But after landing a job as network radio manager at BBDO, she was hooked. “I liked it,” she says. “I realized I could have a voice in radio.”

She may be small in stature, but when it comes to network radio, few have had a bigger impact than Swed Stone. As director of national radio since OMD’s inception in 2000, she has had oversight for more than $150 million in annual network radio spending—more than double any other player—for a roster of accounts across a range of categories, among them JCPenney, Visa, Clorox, State Farm, Lowe’s, McDonald’s and Nissan. Many of those clients, including Visa and Clorox, she has had relationships with for more than a decade.

JCPenney, Swed Stone’s largest account, has made network radio a larger part of its media mix, the result of Swed Stone’s “leadership and passion,” says Robin Thomas, national media manager for the retailer.

“I never worry about what is happening in the [radio] space, because we have Natalie,” Thomas says. “We don’t get into all of the details of the radio plans because we trust that she’ll do the right thing for our business.”

Since the launch of OMD’s network radio group, the staff has grown from just Swed Stone and a couple of others to a group of 12 in New York—a staff that is three times that of any other media shop.

Not content to be just a “buyer,” however, Swed Stone has molded her division into what she describes as a “radio expertise group.”

In many ways, Swed Stone is as much a planner as the planners she works with, with those duties taking up more than half her time. “We don’t buy anything because it’s the best price,” she says. “We do a lot of analytics before we go to market. We help shape the buy.”

“Natalie is unique because of her position in the medium. I wouldn’t want to negotiate against her, but the other side is that she’s a huge proponent of network radio,” says Page Thompson, CEO of OMD North America.

Five years ago, Swed Stone’s passion for radio put her on a mission to improve accountability in the network business. Challenging traditional practices, OMD became the first media shop to use electronic clearance verification systems. Swed Stone took the bold move of inviting all the networks to a meeting, to let them know how OMD would hold them accountable for its investment.

At first, some balked. One network radio exec even stormed out of the room. A year or two later, OMD began to see improvement in their clearances, and today, providing verification services is standard practice at all the major networks. That is one reason, say those in the marketplace, that network radio ad budgets are growing as local and spot are in decline.

“Before, we were doing it for them. Now, they’re doing it for us. It was tough love, but it paid off for network radio,” says Swed Stone.

The added accountability did not go unnoticed with clients. Swed Stone “is transparent about accountability, auditing and posting, which is why we’re comfortable with all our buys,” says JCPenney’s Thomas.

“Natalie’s mark on network radio is indelible,” adds Traug Keller, senior vp at ESPN Radio. “The medium, as well as her clients, are beneficiaries of the standard she has fought so hard to set, both in terms of accountability and creativity.”

Tough on accountability, Swed Stone is also recognized as one of the most creative buyers, pioneering the use of new platforms, including Internet, HD and satellite radio.

For JCPenney, she bought an integrated package with syndicated ESPN program Mike & Mike that included on-air and online. It was a first for JCPenney in the men’s sports arena.

“We went from spending nothing to more than $13 million in the men’s radio space,” Thomas reports. “We broke through because no one was there. Now Kohl’s is looking to copy us.”

Digital is Swed Stone’s next mission. “Some of these alternative media are garnering 10 percent and as much as 15 percent of listening,” she says. “Everyone should be selling with digital integrated in. As new technologies began to stretch the definition of radio, our clients don’t want pieces of terrestrial, satellite, online. They want integrated plans.”

Andy Lipset, co-president of sales for TargetSpot, the largest online audio advertising network, calls Swed Stone “way ahead of the curve in recognizing that listeners’ habits were going to shift over time, and that vehicles like online radio were important to invest in. She has an open mind to new concepts, but at the same time takes a very disciplined approach to fully vetting anything prior to using her client’s advertising dollars in it. OMD clients, and the radio industry at large, are incredibly fortunate to have her on their side.”

When OMD was formed, it had but one obvious choice for network radio, insiders agree: Swed Stone, who had bought network radio as senior vp at The Media Edge, now Mediaedge:cia.

“With the amount of money we spend on network radio, you need the best,” says Thompson. “There is no doubt that she’s the best person in network radio. As a result, network radio at OMD continues to grow and thrive.”

For Swed Stone, joining OMD was like a homecoming (she worked for BBDO earlier in her career). She also gained a former client in Visa. But OMD offered her more than just familiar territory. She would report directly to the CEO. “Most people just fold in network radio and it becomes a stepchild,” says Thompson, adding “we see network radio as an important way of communicating with our clients’ customers.”

“That gives radio a full voice,” says Swed Stone, who is able to work directly with planners. “We don’t wait for anyone to tell us, ‘Buy this.’”