The win is expected to generate revenues of between £7 and £8 million for IPG, whose work will include above-the-line ads as well as interactive, DM and events marketing.
The assignment is for the Nokia N-Series multimedia handsets, which allow users to communicate via text, voice, video and photographs.
The news provides a boost for Tony Wright, Lowe's new worldwide president, who is under pressure from IPG to get the agency back on course and improve its new-business performance after a string of devastating account losses.
Last month, the London agency was hit by a series of senior management defections and the loss of most of its Nestle business to JWT.
IPG's arrival on Nokia's roster is a blow for Grey, Nokia's main agency partner in Europe and the US. The mobile phone operator is expected to put its entire adspend behind the promotion over the next nine months.
Grey had pitched for the business against IPG, Omnicom's DDB, the Havas-owned Euro RSCG and WPP's Bates, which handles Nokia's mobile phone business in Asia.
Lowe will share responsibility for the account with three other IPG operating companies - Jack Morton, an experiential marketing firm, R/GA, an interactive communication specialist, and Draft, the holding company's direct marketing arm.