Arnie’s PPI campaign helps M&C defy the slowdown in adland

M&C Saatchi, the advertising firm behind the Arnold Schwarzenegger PPI campaign, is defying the slowdown in Soho.

Two months after WPP, the world’s biggest ad agency, issued a profit warning that knocked its shares 11%, M&C reported a 17% jump in half-year profits to £13.3 million.

Revenue was up 21% to £121 million.

Chief executive David Kershaw today said WPP, led by Sir Martin Sorrell, was hit by its exposure to multinational giants cutting back on ad spend.

M&C has a different model, with lots of small internal start-ups doing well. “We have this mad dream that we should start as many businesses as Martin buys,” said Kershaw.

“Quite a few of our start-ups are in the high-growth stage.”

The Schwarzenegger campaign for the Financial Conduct Authority (pictured) is going well, he insists, shrugging off complaints that there is little link between the actor and PPI.

“Arnie is someone who is uncompromising in giving instructions,” he said.

“He is someone you listen to and obey.”

M&C’s talent management and PR arms are growing too, leaving advertising less than a third of the revenue, down from two thirds five years ago. The shares moved up 2.5p to 303.5p.