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Media Agencies Turn to AI and Automation to Combat Cash Flow Pressures and Financial Uncertainty
Media agencies face cash flow challenges amid economic pressure, with 85% prioritizing financial health. AI adoption grows, helping automate finance tasks and improve efficiency.
Media Agencies Face Financial Strain, Lean on AI to Boost Cash Flow and Financial Health
AvidXchange Inc., a key provider of accounts payable (AP) automation software, recently released findings from its 2025 Media Agency Health Survey. The study surveyed financial leaders at U.S. media and advertising agencies, highlighting growing concerns about cash flow management and an increased reliance on AI-driven financial tools.
Key Factors Affecting Financial Stability
The survey found that agencies prioritize several critical areas to maintain financial health:
- Revenue growth: Seen as crucial by 92% of respondents.
- Data protection: Important to 91%, reflecting concerns over security.
- Fraud prevention: A priority for 88% of agencies.
- Cash flow management, invoicing, talent retention, and operational efficiency: Also ranked highly for sustaining profitability and smooth operations.
These priorities reflect the need to protect margins while managing risks in a challenging economic environment.
Adjusting to Economic Pressure
Economic uncertainty is affecting agencies significantly. In 2025, 35% reported losing clients to in-house advertising teams, marking a 20% increase compared to the previous year. Additionally, employee turnover rose by 32%, putting further strain on resources amid tight budgets.
Cash Flow Challenges Intensify
Cash flow remains a critical concern, with 85% of respondents rating it as vital to their financial health. However, managing cash flow is increasingly difficult. In 2024, over half of agencies (54%) experienced extended payment terms from clients, and 36% anticipate ongoing disruptions. These factors complicate expense management and growth planning.
AI and Automation Drive Financial Efficiency
Adoption of AI in financial operations is advancing rapidly. Currently, 71% of agencies use AI tools in finance, and nearly all (97%) are open to adopting new automation solutions. Among those using AI, 80% have automated significant portions of their finance functions, including payments.
A major pain point AI is addressing is invoice reconciliation, which traditionally consumes 30–40% of finance leaders’ time. AI-driven automation reduces manual effort, helping teams focus on strategic tasks.
Dan Drees, President of AvidXchange, commented, “Media agencies face mounting pressure as clients reallocate budgets amid economic uncertainty. Agency leaders are scrutinizing operations and cost drivers more closely. AvidXchange’s AP automation technology offers better visibility and control over bills, supported by dedicated customer service to help agencies improve efficiency.”
About the Survey
The survey was conducted online by third-party research firm Prodege, polling 156 decision makers at U.S. media and advertising agencies from January 23 to 26, 2025.
About AvidXchange®
AvidXchange is a leading provider of AP automation and payment software for mid-market businesses and their suppliers. With 25 years in the industry, AvidXchange offers AI-enhanced solutions that increase efficiency, control, and visibility. The company supports over 8,500 businesses and has processed payments to more than 1.3 million suppliers through its network over the past five years.
Learn more about AI and automation tools that can improve finance operations at Complete AI Training - AI Tools for Finance.