Chiat/Day has scooped the 2m Observer account from a shortlist of agencies, including incumbent Leagas Delaney.
The other agencies on the list were Ogilvy & Mather and TBWA. Media planning and buying remains with Pattison Horswell Durden.
The Observer has continued to fare poorly against the giant of the Sunday broadsheet market, The Sunday Times, since it was bought by Guardian Media Group last year.
The appointment of Chiat/Day follows the replacement in February of the newspaper’s editor Jonathan Fenby with Andrew Jaspan from The Scotsman.
Jaspan will relaunch the paper this autumn. The newspaper will be publishing a 48-page listings and entertainments magazine called Preview next month as part of the relaunch. There will be additional editorial changes to the sports and business sections, although the front of the paper will be less drastically revamped.
Leagas Delaney continues to run the account of The Observer’s sister paper, The Guardian.