A recent survey reveals that Canada witnessed a record-high expenditure on sponsorship activities. According to the Canadian Sponsorship Landscape Study, an estimated $4.68 billion was allocated towards sponsorships in the country last year, with significant contributions flowing into professional sports, grassroots sports, and non-profit organizations. The unveiling of the study took place at SponsorshipX, a branding and sponsorship event held in Toronto.
Dr. Norm O’Reilly, a survey author and University of Florida professor, highlighted the impact of inflation post-pandemic, emphasizing the need to consider this aspect in sponsorship discussions. Despite a four percent inflation rate since the COVID-19 outbreak, brands escalated their commitment to rights fees by 17 percent compared to the previous year.
Describing the current era as the “age of optimization of sponsorship,” O’Reilly emphasized the shift towards digital channels to effectively engage with younger demographics, particularly those under 40. The study involved interviews with 114 brands, 50 properties, and 24 agencies, marking the 20th year of the survey.
In 2025, the average brand reportedly invested $10.2 million in sponsorships, with some respondents exceeding $100 million in sponsorship expenditure. Each brand, on average, engaged in 20.1 sponsorships during the year.
O’Reilly attributed the sponsorship surge to the rise of new leagues like the Northern Super League, Professional Women’s Hockey League, and the introduction of Toronto Tempo in the WNBA. This growth reflects the increasing interest from Canadian brands in supporting women’s professional sports, leading to higher pricing for sponsorship assets.
However, the survey raised concerns regarding activation spending, which has stagnated despite the rise in rights fees. O’Reilly expressed worry over the lack of growth in activation spending, noting its importance in enhancing the effectiveness of sponsorships. The industry saw a decline in the sponsorship activation ratio, falling short of the desired one-to-one benchmark achieved in 2023.