Media Agencies Embrace AI to Boost Performance Amid Pressure

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AvidXchange Unveils Insights from 2025 Media Agency Health Survey: A Call for Action in Financial Management

CHARLOTTE, N.C., May 20, 2025 (GLOBE NEWSWIRE)AvidXchange Inc. (Nasdaq: AVDX), a prominent player in accounts payable (AP) automation software, has released pivotal findings from its 2025 Media Agency Health Survey. The survey, aimed at financial leaders in U.S. media and advertising agencies, sheds light on pressing challenges such as cash flow management and an increasing demand for artificial intelligence (AI)-driven solutions to enhance financial health.

Growing Concerns in Financial Operations

The financial landscape for media agencies is evolving, and survey results indicate that leaders are profoundly concerned about their financial wellbeing. A staggering 92% of agencies highlighted revenue growth as a key driver of financial stability. Meanwhile, data protection and fraud prevention were deemed critical by 91% and 88% of respondents, respectively.

Prioritizing Financial Health

In addition to these primary concerns, agencies emphasized the significance of cash flow, improved invoicing practices, talent management, and overall operational efficiency. This clear prioritization underscores an inherent desire not just to maintain profitability but also to safeguard operations as the financial landscape grows increasingly complex.

Navigating Economic Uncertainty

Economic volatility remains a significant challenge. The survey revealed that 35% of agencies lost clients to in-house advertising in 2025—a 20% rise compared to 2024. This shift reflects an industry grappling with budget reallocations as businesses strive to safeguard their operations amid shifting market conditions.

The Pressure of Cash Flow Management

With 85% of agencies rating cash flow as essential to their financial health, the struggle to maintain positive cash flow has intensified. In 2024, 54% of agencies reported extended payment terms from clients. Moreover, 36% anticipate ongoing cash flow disruptions, complicating their ability to manage expenses and sustain growth.

Harnessing AI for Financial Efficiency

Innovation is on the rise, with 71% of agencies already incorporating AI technology into their financial operations. Nearly all (97%) are open to exploring new automation tools. Among those currently using AI, 80% have significantly automated their finance functions—including payment processing. These advancements allow media finance teams to utilize AI-enhanced tools for tasks such as invoice reconciliation, which typically occupies 30–40% of finance leaders’ time.

Leadership Insights from AvidXchange

Dan Drees, President of AvidXchange, commented on the survey’s findings, stating, “Media agencies are under more pressure than ever as clients reallocate budgets to safeguard their businesses in today’s uncertain economy. This intensifies the scrutiny agency leaders impose on their operations, revenue strategies, and cost drivers.”

Transformative AP Automation Solutions

Drees emphasized that AvidXchange’s world-class accounts payable automation technology is designed to empower agencies with better visibility and control over their financial obligations. The company proudly offers robust customer support aimed at helping agencies navigate change and enhance operational efficiency.

Survey Methodology

AvidXchange collaborated with Prodege, an independent market research firm, to conduct this comprehensive online survey. The survey targeted 156 decision-makers at U.S. media and advertising agencies, with data collected between January 23-26, 2025.

Why Automation Matters

As AvidXchange continues to lead the charge in AP automation, an essential question arises: What can agencies do to stay ahead of financial challenges? Experts agree that the path forward lies in embracing automation technologies, which not only reduce manual workloads but also increase accuracy and efficiency in financial operations.

Fostering a Culture of Innovation

A shift toward a technology-driven culture is vital. Innovative solutions, such as those offered by AvidXchange, are essential for agencies striving to enhance their financial management processes. Such tools not only streamline operations but foster resilience in volatile market conditions.

The Role of Data Security in Financial Health

As agencies pivot to embrace technology, concerns over data protection remain paramount. With 91% of respondents stating that data protection is critical to their operations, the message is clear: Financial technology must come with robust security measures to protect sensitive information.

Encouraging Talent Management

Employee turnover is another pressing issue, with a reported 32% increase since 2024. As talent acquisition and retention become increasingly challenging, agencies must address currency concerns by investing in their workforce. Training and development, particularly in financial technology, can prepare teams to adapt to evolving demands.

Rising Demand for Financial Insights

In times of uncertainty, the need for timely, comprehensive financial insights has never been greater. Agencies are increasingly seeking real-time reports and analytics that allow them to make informed strategic decisions quickly and efficiently.

Looking to the Future: A Vision for Financial Stability

As we move forward in 2025, agencies must continuously evolve to face market challenges. The integration of AI and automation technologies presents an exciting opportunity for them to thrive despite fluctuating conditions.

About AvidXchange

With over 25 years of experience and a commitment to providing intelligent accounts payable solutions, AvidXchange has revolutionized expense management for mid-market businesses and their suppliers. Serving over 8,500 businesses, the company enhances operational efficiency through advanced technology and expert support.

Conclusion: Embracing Change for Better Financial Health

As highlighted in the 2025 Media Agency Health Survey, the path to financial health requires vigilance and adaptation. By prioritizing cash flow management, investing in AI solutions, and fostering a culture of innovation, agencies can position themselves for success in an unpredictable future. The journey begins with understanding the stakes and committing to transformative practices that ensure their sustainability and growth in an ever-evolving marketplace.

For further information on AvidXchange’s offerings and insights, visit avidxchange.com.

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

Let AvidXchange lead the way to financial independence and resilience.

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Leah Sirama
Leah Siramahttps://ainewsera.com/
Leah Sirama, a lifelong enthusiast of Artificial Intelligence, has been exploring technology and the digital world since childhood. Known for his creative thinking, he's dedicated to improving AI experiences for everyone, earning respect in the field. His passion, curiosity, and creativity continue to drive progress in AI.