Albion has been briefed to produce a number of animated viral movies.
There will also be online and press advertising, which will run in ten countries worldwide.
Since its launch in August 2003, the Skype software has been downloaded more than 131m times.
Skype's decision to advertise has been prompted by the launch of the rival voice call service Google Talk.
Niklas Zennstrom, Skype's chief executive, said: "It is fundamental to our business that people understand what makes Skype different. Albion understands this and its work is a clear indicator of the importance we place on creating a strong global brand."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.