Media supplier turnover is spiking across global markets, disrupting workflows and straining agency-client relationships.
North American advertising agencies are seeing increased attrition rates, and the costs are steep; beyond the dollars lost to recruiting and retraining, the real price is felt in missed deadlines, delayed campaigns, and weakened supplier trust.
So, what’s causing this exodus, and how can agencies build more resilient supplier partnerships?
What Is Media Supplier Attrition?
Media supplier attrition refers to the rate at which vendors and service partners—such as media buyers, production houses, freelancers, and digital platforms—stop working with an agency or choose not to renew their contracts.
This can happen voluntarily (when suppliers opt out) or involuntarily (when agencies cut ties due to performance or budget changes).
What’s Fueling the Rise in Supplier Attrition?
Attrition in the media supply chain is complex, but several key drivers are consistently at play.
Overloaded Teams and Burnout
The media world moves fast. Many agencies operate with lean teams and intense turnaround times, especially under the pressure of constant pitching. As a result, professionals are burning out fast.
When internal teams are overwhelmed, supplier relationships can suffer: invoices might be delayed, communication can break down, and trust may erode.
Manual, Disconnected AP Processes
Many agencies still rely on legacy systems or siloed workflows to manage their accounts payable (AP). That means:
- Manual invoice entry.
- Delayed approvals.
- Poor visibility into invoice and payment status.
These may lead to late payments, duplicate follow-ups, and strained relationships. In an industry where suppliers often operate on thin margins, one delayed check can lead to attrition.
Economic Pressure and Revenue Volatility
As marketing budgets tighten, payment terms stretch out—putting cash flow pressure on suppliers who may choose to work with more financially stable partners. Combine that with rising operational costs, declining ad revenues, and increased competition for advertiser budgets, and it can become difficult to stay profitable.
Technology Misalignment
AI and automation are reshaping the industry, but not everyone’s keeping pace. Media companies that struggle with digital transformation often experience higher attrition possibly caused by inefficiencies and skills gaps. Meanwhile, agencies embracing AI-enhanced tools are seeing gains in both retention and productivity.
The Real Cost of Supplier Turnover
Supplier attrition is both inconvenient and expensive. When a reliable media supplier walks away, agencies are losing more than just a resource; they’re losing time, money, and momentum.
Here’s a breakdown of what’s really at stake.
Direct Financial Costs
Replacing a supplier involves more than sourcing a new vendor. It means:
- Onboarding and compliance setup: Vetting, documentation, and alignment on processes can cost thousands in staff time.
- Contract renegotiation: Legal review and rate negotiations slow down project timelines and create administrative overhead.
- Temporary productivity loss: While onboarding new vendors, teams often scramble to reassign media buys or delay deliverables, impacting revenue and client satisfaction.
Hidden Operational Risks
The real impact often comes from what you can’t easily measure:
- Knowledge loss: Vendors familiar with your brand, timelines, and expectations take that context with them.
- Disrupted delivery: Late creative approvals, missed placement deadlines, or rebooking delays jeopardize campaign success.
- Client trust erosion: When suppliers drop out midstream, clients notice. Their trust may waver, and renewal discussions can become more difficult.
High supplier churn can also signal broader instability within your agency—a red flag to prospective clients and strategic partners.
Compounding Burnout
When suppliers leave, internal teams usually end up picking up the slack. Media buyers, AP staff, and account leads absorb additional work to re-source vendors, field questions, and get projects back on track. Over time, this added pressure can accelerate employee burnout, a key driver of agency-wide attrition.
Bottom line: supplier turnover may set off a ripple effect that impacts every layer of the agency, from campaign execution to revenue to team morale.
What High-Retention Agencies Do Differently
Agencies that retain suppliers and clients at above-industry rates have built intentional processes that value reliability, transparency, and shared success. Here’s what they do that others don’t.
Create Clear, Repeatable Processes
High-retention agencies take the guesswork out of collaboration. They provide suppliers with:
- Defined invoice and payment workflows
- Standardized onboarding protocols
- Designated points of contact for AP and operations
This operational clarity gives suppliers confidence. They know how to engage, what to expect, and how to resolve issues without escalation.
Prioritize Predictable Payments
It’s simple but effective: agencies that pay on time, every time keep their suppliers close. Using automation to ensure consistent payment cycles—even during high-volume seasons or staff transitions—creates trust and dependability.
This consistency pays off. Agencies that routinely pay on time can see lower vendor churn, better rates, and faster campaign fulfillment.
Use Automation to Reduce Friction
Manual processes don’t scale, and they frustrate vendors. High-retention agencies leverage AI-enhanced AP automation to:
- Accelerate invoice approvals and eliminate bottlenecks.
- Prevent late or missed payments.
- Give vendors real-time access to payment status, remittance details, and support channels.
This level of visibility improves vendor satisfaction and minimizes back-and-forth communication, freeing up time for everyone.
Invest in Relationships
Just like clients, suppliers want to feel valued. Top-performing agencies treat vendors as strategic partners, not just service providers.
- They hold regular check-ins to review performance and expectations.
- They include vendors in campaign planning conversations.
- They recognize supplier wins and share feedback early.
This relationship-first approach fosters loyalty and helps vendors go the extra mile when it matters most.
Use Data to Stay Ahead
Agencies with high retention don’t react; they anticipate. They use vendor performance metrics and AP analytics to:
- Spot early signs of disengagement or slowdowns.
- Identify bottlenecks in payment processes.
- Monitor the financial health and responsiveness of key partners.
With better visibility, they intervene early, preventing issues before they turn into attrition.
4 Ways to Improve Supplier Retention with Smarter Operations
Automate AP for Speed and Transparency
Automation eliminates guesswork for your suppliers. With an AI-enhanced AP solution:
- Invoices are captured and routed automatically.
- Approvals happen faster, even across departments.
- Payments are processed on a predictable schedule.
- Suppliers gain self-service access to payment status.
This reduces late payments, errors, and the need for constant follow-up, which keeps your suppliers confident and informed.
Implement Structured Vendor Relationship Management
Set up clear, consistent processes to support suppliers:
- Monthly or quarterly performance check-ins.
- Designated vendor relationship contacts.
- Defined escalation paths for issue resolution.
These practices signal that you value the relationship—and give suppliers a clear way to raise concerns if they’re thinking about walking away.
Prioritize On-Time Payments
Reliable payment timelines help foster trust. With automated workflows and approval alerts, you can:
- Ensure timely processing regardless of workload.
- Support vendor cash flow.
- Avoid disruptions that damage delivery and media performance.
This small shift makes a big impact. According to Aptitude, 65% of media companies report that vendor churn is linked to payment breakdowns and expired contracts.
Simplify Internal Workflows to Reduce Burnout
Streamlined operations benefit more than just your suppliers. Automation can help by:
- Reducing repetitive tasks for your team.
- Freeing up bandwidth for strategic work.
- Lowering stress and improving job satisfaction.
When your internal teams are running efficiently, your vendors experience that stability firsthand.
Why Now Is the Time to Invest in Automation
The current state of the media industry demands a forward-thinking approach. Agencies that adopt AI-enhanced solutions to support financial operations can increase productivity, strengthen supplier relationships, and reduce risk.
AvidXchange helps media and marketing agencies automate invoice approvals, simplify payments, and give suppliers the visibility they need to stay engaged and loyal. The results? More time back, fewer errors, and better partnerships.
Don’t let supplier attrition derail your business.
By upgrading your AP operations with automation, creating structured communication channels, and delivering on-time payments, your agency can transform supplier relationships from fragile to future-ready. Book a demo with AvidXchange today and see how you can get an edge on the competition.