Media Agencies Under Pressure, Turning to AI to Strengthen Financial Health and Cash Flow, AvidXchange Survey Reveals

Rhea-AI Summary

AvidXchange's 2025 Media Agency Health Survey reveals significant financial challenges and increasing AI adoption in media agencies. 92% of agencies cite revenue growth as crucial for financial stability, followed by data protection (91%) and fraud prevention (88%). The survey highlights concerning trends, with a 20% increase in clients moving to in-house advertising and a 32% rise in turnover from 2024. Cash flow management remains critical, with 54% of agencies experiencing extended payment terms and 36% anticipating continued disruptions. On the technology front, 71% of agencies already utilize AI in finance, with 97% open to new automation tools. Invoice reconciliation is identified as a major challenge, consuming 30-40% of finance leaders' time. The survey, conducted by Prodege, included 156 U.S. media and advertising agency decision-makers.

Positive

• 71% of agencies already use AI in finance, with 97% open to new automation tools
• 80% of AI adopters have automated significant parts of their finance function
• Strong focus on financial stability metrics: revenue growth (92%), data protection (91%), fraud prevention (88%)

Negative

• 35% of agencies lost clients to in-house advertising in 2025, up 20% from 2024
• 32% increase in employee turnover from 2024
• 54% of agencies face extended payment terms, with 36% expecting continued cash flow disruptions
• Invoice reconciliation consumes 30-40% of finance leaders' time

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New Survey Reveals Top Financial Operational Challenges and the Expanding Role of Automation in Finance

CHARLOTTE, N.C., May 20, 2025 (GLOBE NEWSWIRE) -- AvidXchange Inc. (Nasdaq: AVDX) a leading provider in accounts payable (AP) automation software and payment solutions for mid-market businesses and their suppliers, today announced findings from its 2025 Media Agency Health Survey.

The survey polled financial leaders at U.S. media and advertising agencies, revealing rising concerns about cash flow management and growing demand for AI-driven solutions to strengthen their financial health.

Key Drivers of Financial Health
Agencies cited revenue growth (92%), data protection (91%), and fraud prevention (88%) as vital to financial stability. Cash flow, improved invoicing, talent management, and operational efficiency also ranked as important contributors. These priorities reflect a continued need to protect profitability while safeguarding operations in an increasingly complex financial landscape.

Adapting to Uncertainty
Agencies continue to feel the pinch of economic uncertainty, with 35% losing clients to in-house advertising in 2025, a 20% jump from 2024. Rising turnover, up 32% from 2024, is further stretching teams that are already facing tight budgets.

Cash Flow Pressures Rise
Despite 85% of respondents rating cash flow as critical to financial health, many agencies struggle with managing it. In 2024, 54% of agencies reported extended payment terms from clients, and 36% expect continued disruptions to cash flow, making it harder to manage expenses and growth.

AI and Automation are Transforming Financial Operations
71% of agencies already use AI in finance, and 97% are open to new automation tools. Among adopters, 80% have automated significant parts of their finance function, including payment processes. Media finance teams are using AI-enhanced tools to tackle a key pain point—invoice reconciliation—which takes up 30–40% of finance leaders’ time.

“Media agencies are under more pressure than ever as clients reallocate budgets to safeguard their businesses in today’s uncertain economy, and as a result, agency leaders are scrutinizing operations, revenue strategies, and cost drivers more closely,” said Dan Drees, President of AvidXchange. “That’s where AvidXchange comes in. Our world-class AP automation technology provides greater visibility and control over their bills, backed by an incredible customer support team dedicated to helping them navigate change and drive efficiency.”

Survey Methodology
AvidXchange used the third-party market research company Prodege to conduct an online survey to 156 decision makers at U.S. media and advertising agencies, conducted between January 23-26, 2025.  

About AvidXchange®  
  
AvidXchange (Nasdaq: AVDX) is a leading provider in accounts payable (AP) automation, offering intelligent AP software and payment solutions specifically designed for mid-market businesses and their suppliers. With 25 years of industry experience, AvidXchange modernizes the way businesses manage their expenses and payments by offering AI-enhanced software coupled with support from experts. Empowering over 8,500 growth-driven businesses, AvidXchange increases efficiency, control, and visibility in financial operations and has securely processed payments to more than 1.3 million suppliers through its proprietary payment network over the past five years. For more information, visit avidxchange.com.

Media Contact:   
Alexis Riddick
Public Relations Manager
AvidXchange
pr@avidxchange.com

FAQ

What are the main financial challenges facing media agencies in 2025 according to AvidXchange survey?

The main challenges include extended payment terms (54% affected), cash flow disruptions (36% expecting continued issues), increased client loss to in-house advertising (35%), and higher employee turnover (32% increase from 2024).

How many media agencies are using AI in finance operations according to AVDX survey?

71% of media agencies currently use AI in finance operations, and 97% are open to new automation tools. Among AI adopters, 80% have automated significant parts of their finance function.

What percentage of finance leaders' time is spent on invoice reconciliation according to AvidXchange?

Invoice reconciliation consumes 30-40% of finance leaders' time, making it a key pain point for media agencies.

What are the top factors affecting media agencies' financial stability in 2025?

According to the survey, the top factors are revenue growth (92%), data protection (91%), and fraud prevention (88%), along with cash flow management, improved invoicing, talent management, and operational efficiency.

How has client retention changed for media agencies from 2024 to 2025?

Media agencies experienced a 20% increase in clients moving to in-house advertising in 2025 compared to 2024, with 35% of agencies losing clients to this trend.