At the start of 2025, volatility and economic uncertainty left much of the media and advertising industry in a holding pattern; now, as the year progresses, activity is beginning to pick up again. Changes in ad dollars, the continued rise of AI in boardrooms and heightened M&A deals all contribute to what could be real financial opportunities in the industry. Finance leaders just need to know where to look. 

MEDIA AND ADVERTISING IS FRAGMENTED; BUT NOT STUCK

Ad spending continues to grow, albeit at lower growth rates for 2025 than initially anticipated; however, there is a continued evolution as to how media and advertising companies operate and earn revenue. After seeing a move from traditional to digital channels and from brand-owned platforms to creator-led content, the latest shift is a growing interest in performance-based partnerships. Digital advertising remains the prominent means of promotion in this industry, but leaders will be watching to see if that shifts over time. 

Under the performance-based partnership approach, advertisers pay for measurable outcomes rather than impressions alone, which can drive growth and improve accountability. But this also adds complexity to the financial side of the business. Non-standard contracts are becoming more common, often with unique terms tied to campaign performance metrics or audience engagement goals. These arrangements demand greater judgment in revenue recognition, requiring finance teams to assess accounting standards that may not align neatly with new business models. 

At the same time, finance departments are under increased pressure to adapt quickly, building systems and processes that can track, measure and validate these performance-based agreements with accuracy and speed. For companies that can manage this complexity well, the rewards are significant; but success requires agility, technical expertise and alignment between operational and financial teams.

AI: LESS BUZZ, MORE BACK OFFICE

Generative AI has quickly moved from being a flashy new tool to a core part of daily operations for media and advertising companies. It is no longer just an experimental marketing aid; AI is now curating high-quality content, personalizing campaigns at scale and helping brands execute top-performing initiatives. On the finance side, automation is streamlining month-end closes, accelerating contract reviews and optimizing ad spend, resulting in faster decision-making and improved efficiency.

With AI now deeply embedded in business processes, the conversation is shifting from “What can it do?” to “How do we govern it effectively?” Smart operators are implementing guardrails to ensure accuracy, consistency and compliance, particularly as regulatory expectations around AI continue to change. Boards are demanding assurance that these tools are being used ethically and transparently, with documented oversight of how AI-generated outputs are created and validated.

A robust governance framework includes engaging qualified auditors to review both the technology itself and the processes that surround it. This involves assessing the integrity of AI-generated content, evaluating the controls in place to mitigate bias or error and ensuring compliance with relevant data privacy and advertising regulations. By combining the power of AI with disciplined oversight, companies can leverage its efficiency gains while safeguarding brand trust and financial integrity.

DEALS ARE COMING BACK

After a choppy 2024, dealmaking across the media and advertising sector has re-accelerated in the first half of 2025, led by significant investments from strategic acquirers in the space. Marketing and advertising technologies have been the strongest drivers, each displaying robust growth in transaction activity and attracting renewed attention from strategic and institutional investors. 

Skydance Media’s $8 billion merger with Paramount Global reshaped the studio and streaming landscape, forming Paramount Skydance Corporation and signaling renewed investor appetite for bold bets on content, distribution and scale. Even larger was Omnicom’s $13+ billion acquisition of Interpublic Group, the most significant consolidation in the agency world in decades, vaulting the combined entity ahead of WPP Media as the global leader in marketing services. These headline deals, alongside a steady stream of $100 million-plus acquisitions in marketing technology, advertising technology and digital content, demonstrate that buyers are back in the market.

This growth is driven by a variety of factors: there is an industry-wide urgency to integrate AI and data-driven solutions and pursue global scale and efficiency. Rounding all of this out is a renewed confidence as capital markets stabilize. Still, hurdles like relatively high interest rates, regulatory scrutiny of mega-deals and ongoing budget pressures across agencies and publishers, continue to deter potential transactions. Overall deal volumes in the space still remain below pre-2022 levels, as a result, despite some headline-grabbing transactions. This reflects a more cautious middle-market environment where buyers remain selective. 

Even so, the first half of the year has made one thing clear: deals are coming back.

BOARDS ARE ASKING BETTER QUESTIONS

Audit committees and board members are sharpening their focus and asking more strategic, forward-looking questions. Where AI controls need to be implemented, so do cybersecurity protocols. Cyber risk is escalating — especially in the ad technology and digital platform ecosystems — where data sharing is frequent, and vulnerabilities can be exploited across multiple touchpoints.

Committees are increasingly pressing for detailed reviews of vendor relationships, data security protocols and incident response plans. In addition, there is a growing recognition that the finance function must be equipped for reporting and resilience. Boards are digging deeper into whether the finance team has the systems, processes and talent needed to support real-time analytics, adapt to regulatory changes and scale with the business. 

These elevated expectations signal a shift toward proactive governance and a greater alignment between financial health, technology strategy and long-term risk mitigation.

WHERE SMART OPERATORS ARE FOCUSING

Leading media and advertising companies are not waiting to react; they are taking proactive steps to position themselves for long-term stability and growth. They are revisiting their revenue models, especially those tied to digital and creator economies, which come with unique monetization and risk challenges. From subscription fatigue to shifting brand partnerships, understanding where revenue is truly sustainable has become critical. 

At the core of these strategies is a renewed investment in finance agility. This means upgrading systems, upskilling teams and optimizing processes to enable faster, more accurate decision-making. By strengthening the connection between financial operations and broader business strategy, these companies are building the resilience needed to compete and thrive in media.

KEY TAKEAWAYS

The rest of 2025 is open. While the industry faces complexities, there is also real opportunity. Media and advertising companies that stay focused on governance, data, decision-making, and strategic organic and inorganic opportunities will be the ones who succeed. 

To learn more about GHJ’s Media and Advertising Practice, contact the team.