Gateway Moves Advertising In-House

Gateway has moved its estimated $250 million account in-house, the company confirmed today during an analyst meeting in San Diego.

The move occurs after Fallon broke off talks with the computer maker last week, in part because Gateway intended to handle at least some of the account in-house, sources said at that time. Gateway hopes to create ad campaigns that will reshape the brand.

This comes as the company is in the process of simplifying its product line to reduce costs in the face of slumping sales. Gateway has already announced that it will cut roughly 3,000 jobs. Fallon’s New York and Minneapolis offices had expected to pick up Gateway’s account in a review that also included Siltanen/Keehn in El Segundo, Calif., Arnold Worldwide in Boston and Di Massimo BrandAdvertising in New York.Gateway officially parted with McCann-Erickson in New York several weeks ago.

Rebecca Flass