The appointment by the Bourne Leisure-owned holiday brand ends a four-month search for an agency to replace Fox Kalomaski, which had handled the account since October 2006.
Lida will take responsibility for all of Butlins' direct communications, with a brief to encourage customers to holiday at the company's Bognor Regis, Skegness and Minehead resorts. The work will include traditional DM, as well as press, inserts and direct TV campaigns.
Lida will work closely on the account with RPM3:Beechwood, Butlins' above-the-line agency, which has recently been responsible for leading the brand's repositioning as "Altogether More Fun".
Lisa Thomas, the Lida chief executive, said: "Butlins is a great British brand, with a great story to tell. The economic climate has thrown up some interesting challenges for the travel industry. We can't wait to launch our first campaign."