The campaign, which will aim to reposition the model, will incorporate press and online ads as well as develop a website to create interest in taking the Peugeot 407 for a test drive.
E3, which has worked with the automotive giant before on digital campaigns for Peugeot Citroen, said it was the first time Peugeot had chosen a pure-play digital agency to create a through-the-line work for a campaign.
Stuart Avery, managing director of E3, said: "We've invested heavily in developing our advertising capabilities and this is a hugely significant win for us. We'll be developing a refined, premium feel to the campaign that will allow visitors to discover the car online through video and rich media in an effort to communicate the quality of the vehicle."
E3 also lists Triumph and Kia among its automotive and motorcycle clients.