"We were looking at the big picture and making sure we got as many points as we could."
Paddon entered the Otagoevent during a break inhis WRC programme with Hyundai.
He also entered the NZRC Historic category and, in doing so, achieved a historic result - the first victory at a national rally championship event by a two-wheel-drive car since 1987.
Campbell completed Saturday's nine stages holding a 16.4secs lead over Paddon. The margin see-sawed on Sunday until Paddon closed down a 17.1sec deficit with two stages left to go in front.
Campbell now lies second in the New Zealand Championship. Nelson's Ben Hunt (Subaru Impreza) finished fifth at Otago but retains the series lead with 66 points, from Campbell with 59 and Rangiora's Matt Summerfield (Subaru) on 43.
The Tauranga crew of Andy Martin and Matt Hayward (Mazda RX3) finished seventh in the classic rally and are now second in the NZ Rally Championship Historic category.