The appointment will see Nikon's UK creative agency, BMP DDB, develop above-the-line creative that takes its lead from a central theme developed by AKQA.
AKQA claims it is the first time Nikon has used an agency outside Japan to develop a campaign for a pan-European product launch.
Above-the-line media is likely to include press and posters. AKQA will be responsible for developing a website and a digital campaign for the camera.
The activity will push the camera to trendy consumers, and will focus on Nikon SQ's unique swivelling lens.
It will compete against products including Canon's IXUS and the Sony Cybershot.
Last year, Nikon UK selected AKQA as its digital agency of record following a competitive pitch. However, this is the first work the digital agency has done for Nikon Europe.
In November, BMP ran a national television brand campaign for Nikon, using the strapline: "The future is more predictable than you think." It promoted the idea that, through time, certain truths never change, and Nikon cameras can be used to capture important moments.
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