Goodstuff pitched against Starcom, Arena, Havas Media and Vizeum. It will now create work for the department store that will break in mid-June.
The result follows the appointment of Tony Holdway, the former brand director at DIY retailer Wickes, to the new role of director of brand at House of Fraser earlier this month.
Holdway said: "We look forward to working with Goodstuff to develop a new media strategy for House of Fraser.
"We would like to take this opportunity to thank Starcom MediaVest for their hard work and commitment to our business throughout our longstanding partnership."
House of Fraser spent £3.2 million on media in the year to September 2012, according to Nielsen.
Andrew Stephens, a founding partner at Goodstuff, said: "We are chuffed to bits. House of Fraser is a great brand with a top-notch marketing team and we can’t wait to get started."
House of Fraser recently posted record sales of £1.2 billion for the year to January 2013, a 3.3 per cent like-for-like rise.