Media agency Carat currently handles the media planning and buying for Asda, and holds the account for the digital work for Asda's financial services.
Adam Culkin, Asda online marketing manager, said the firm had chosen The Search Works over a media agency because of its specialist expertise in the search area.
Asda hopes that upcoming search campaigns will promote online as an additional shopping channel for its customers.
At The Search Works, the account will move into its designated retail team, which also includes the likes of Comet, Debenhams and The Carphone Warehouse.
Sonia Bercel, new business director at The Search Works, said: "They are very much focused on making a big imprint online and competing online with the likes of Tesco.
"We have a very experienced retail team and it's their vertical expertise that Asda will benefit from."
Asda has made other moves to boost its presence online and last August appointed TradeDoubler to manage its affiliate marketing campaign to promote its offers, such as entertainment, floral, contact lenses, gifts and photography.
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