A recent study reveals that sponsorship spending in Canada has reached record levels. The Canadian Sponsorship Landscape Study indicates that a total of $4.68 billion was allocated to sponsorships in the country last year, with professional sports, grassroots sports, and non-profit organizations being the main recipients. 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 investments post-pandemic. He pointed out that despite a four percent yearly inflation rate since COVID-19, brands increased their commitment to rights fees by 17 percent compared to 2024.
The study emphasizes the shift towards digital channels to engage with younger audiences, particularly those under 40, as a key trend in optimizing sponsorships. While traditional methods like live events and product sampling still play a role, digital platforms are becoming increasingly important, driving up the costs of these assets.
In gathering data for the survey, CSLS interviewed 114 brands, 50 properties, and 24 agencies. This year marks the 20th edition of the survey. The findings revealed that the average brand spent $10.2 million on sponsorships in 2025, with some investing over $100 million. On average, brands engaged in 20.1 sponsorships during that year.
O’Reilly attributed the sponsorship surge to the rise of new leagues such as the Northern Super League, the Professional Women’s Hockey League, and the WNBA’s Toronto Tempo. He noted that the growing interest in women’s professional sports has led to increased support from Canadian brands, resulting in higher sponsorship prices.
Despite the positive trends in rights fees, the survey identified a concerning pattern where activation spending has remained stagnant. Activation spending refers to additional investments made to promote the sponsorship beyond the rights fees. O’Reilly expressed disappointment in the lack of growth in activation spending, as it could impact the effectiveness of sponsorships in the long run.