A recent survey revealed that sponsorship spending in Canada has reached an all-time high. The Canadian Sponsorship Landscape Study indicates that a total of $4.68 billion was allocated to sponsorship in Canada last year, with professional sports, grassroots sports, and non-profit organizations being the primary beneficiaries. The study was presented at SponsorshipX, a branding and sponsorship conference in Toronto.
Dr. Norm O’Reilly, a professor at the University of Florida and one of the survey’s authors, highlighted the impact of inflation on sponsorship spending post-pandemic. He noted a 17% increase in brands’ commitment to rights fees compared to the previous year, despite a four percent inflation rate. O’Reilly emphasized the shift towards digital channels as a key strategy to engage younger Canadians, particularly those under 40, leading to a rise in the cost of digital assets.
The survey, now in its 20th year, gathered insights from 114 brands, 50 properties, and 24 agencies. It was found that the average brand invested $10.2 million in sponsorships in 2025, with some respondents exceeding $100 million. On average, a brand engaged in 20.1 sponsorships during that year.
O’Reilly pointed out that the rise of new leagues such as the Northern Super League and the Professional Women’s Hockey League, along with the introduction of the WNBA’s Toronto Tempo, has contributed to the sponsorship surge. He highlighted the growing support for women’s professional sports among Canadian brands and the resulting increase in sponsorship costs due to high demand.
Despite the growth in rights fees, the survey identified a concerning trend of stagnant activation spending. Activation spending refers to additional investments beyond rights fees to enhance the impact of a sponsorship. O’Reilly expressed disappointment in the lack of growth in activation spending, emphasizing its importance for the effectiveness of sponsorships in the long run.
In summary, while sponsorship spending in Canada has reached record levels, there are areas like activation spending that require attention to ensure the continued success and impact of sponsorships in the evolving marketing landscape.
