According to Nielsen Media Research, the account is worth around £2.5 million. However, Smart is set to increase its budget to £10 million as it looks to advertise on television for the first time.
Farm won a five-way pitch against the incumbent, Maher Bird Associates, Clemmow Hornby Inge, Campbell Doyle Dye and Boymeetsgirl, the agency set up by Springer & Jacoby and St Luke's co-founder Andy Law. The AAR oversaw the pitch.
Boymeetsgirl had been tipped to take the UK account as part of a consolidation strategy; Springer & Jacoby handles the Smart car business in all markets apart from the UK. The agency also holds DaimlerChrysler's corporate account.
The pitch was run by Sam Bridger, the head of marketing at Smart, who joined from Orange last year.
Smart said it was significantly increasing its advertising budget to support the launch of several new models, the first being the Roadster and Roadster-coupe sports cars in September. Next year, Smart plans to launch the ForFour, its first four-seater vehicle.
"Farm excited us with its fresh ideas on how we could convey the evolution of the brand as the new models are introduced while retaining the DNA of Smart and its unique personality," Bridger said of the decision to hand Farm the business.
Smart has also appointed Monkey, Farm's communications planning arm, to work alongside its media agency BJK&E, whose hold on the Smart media account was unaffected by the review.
MBA will continue to hold the business for Mercedes-Benz's after-sales service, trucks, vans, corporate and used cars.
CDD holds the above-the-line creative account for the DaimlerChrysler Mercedes-Benz new car range.