The agency will work for the UK division of American skincare company ET Browne Drug Co, which sells Palmer's through high-street chemists, including Boots and Superdrug.
The incumbent on the account was the full-service agency Pawson Media, which went into administration in December.
The review was launched after Pawson Media ceased trading.
The agency will work across a range of products, including Skin Therapy Oil, Cocoa Butter and the Palmer's Stretch Mark Range.
Advertising spend, which is planned to rise above £1m this year, has traditionally been directed at women's consumer magazines.
John Ayling said: "We are delighted to have been appointed to work on this exciting and expanding range of brands".
Norbert Schlachter, managing director, Palmer's said "We feel John Ayling and Associates will be a good fit for our company and will provide us with the adequate knowledge, insight and recommendations to achieve our communication objectives, in a cost-efficient manner".
ET Browne was founded in the US more than 160 years ago.