Young, precocious, and with little apparent sense of his own mortality, Mat Baxter is seen by some to personify the Naked Communications brand. A former policeman with dreams of becoming a criminal lawyer, Baxter - now the network’s Asia-
Pacific CEO - realised before it was too late that the “black-and-white” life was not for him, describing himself as more of a “grey and colours” person.
Colourful Baxter certainly seems, with an infectious energy. A source describes him as incredibly sharp, deeply ambitious and a “very ‘Naked’ guy” for whom “very little gets in the way”. It is qualities such as these that have led Baxter to the position in which he now finds himself: having established Naked’s Australian operation along with Mike Wilson and Adam Ferrier, Baxter is preparing to lead the agency into Asia, a challenge he seems unnervingly ready to take on. With an office in Tokyo, and new financial muscle following its acquisition by Photon Group, Naked looks in good shape to move into China and India.
But is Asia prepared for Naked’s premium proposition and no-nonsense approach? As one observer notes, “Asia is most definitely not Australia”.
In characteristic style, Baxter explains that Naked’s philosophy is simply to tell clients what they need to hear. “If a client’s product is a turkey, why tell them it’s great?” he asks. “We tell them up front.
Traditional agencies are incentivised to get clients to spend money, even if their product’s no good. They always offer a media or advertising solution, even when it’s not in the best interests of the client or the industry. If you ask a fishmonger what to have for dinner, he will say fish. But there are more sensible ways of working than the one we’ve inherited.”
He describes Naked as “a communications agency in the broadest sense of the term”, explaining that with no vested interests to sell any particular medium, it is free to offer the most fitting solution to a problem, which while in some cases may be traditional advertising, in others may be new packaging or sales training.
Baxter emphasises, however, that Naked is completely different in every market, explaining that cultural sensitivity is at the agency’s core. “It would be crazy to treat Japanese clients in the same way as clients in the US or in Sydney. We won’t approach China in the same way either, but we recognise that clients everywhere are looking for these services.”
Nonetheless, observers suggest that Naked would be prudent to focus on multinational clients when venturing into Asia, particularly since local clients are often unused to paying a premium for strategy.
While Baxter agrees that global clients would be more familiar with Naked’s offering and therefore easier to convert than local businesses in markets like China or India, he says the agency will target any company that it feels will benefit. “If they’ve got a brand, they need our help, and can pay the bill, they’re a prospective client,” he says, admitting that as a business based on intellectual capital, Naked’s cost base is higher than a regular agency.
Baxter concedes that Asian companies are more fee-focused than Western counterparts, but is adamant that clients will be willing to pay for objective, non-verbose guidance.
“Most agencies can’t offer true strategic advice because they generate income through media buying,” he says. “A bank may need a more customer-oriented model, rather than a sexy ad for $4 million. But if they advised clients not to spend money, they’d go bust.”
And to the observation that Asian clients see security in size, he notes that keeping company with brands such as Unilever and Microsoft will be a major reassurance for new clients, adding that with eleven offices worldwide, Naked is no longer a ‘boutique’ agency. “People in Asia are capable of balancing risk and value,” he says, confident that the region’s entrepreneurial spirit will work in Naked’s favour.
The agency’s propensity to develop PR buzz should also not be underestimated. Naked has shown itself able to generate considerably more attention from the press than many agencies two or three times its size. Observers suggest that other than the talent it attracts, Naked’s success in Asia will depend largely on its ability to modify its sometimes aggressive approach. One source comments that Asia appreciates humility. While “humble” is not a fitting description for Baxter or Naked, “driven” certainly is.
A stint at WPP for Baxter ended in 2004 with the Australian launch of Maxus. It taught him, Baxter says, that “there were many things to be improved” in the industry. Having created a considerable stir in the UK, Australia and the US among other more mature markets, Naked’s improvements to Asia remain to be seen.
Mat Baxter’s CV
2007 CEO, Asia-Pacific, Naked Communications
2004 Founding partner, Naked Communications Australia
2003 Business director, Maxus Sydney
2003 Business director, MindShare Sydney
1998 Account co-ordinator, Zenith Media
