Dive Brief:

• Kellogg's Cheez-It Snap'd partnered with Amazon to establish a rewards program that is based on streaming viewing habits on Prime Video, according to a press release.
• Snap'd & Stream, which consumers can enroll in via their Amazon account, presents a new theme each month and a set amount of content to view. July's theme, for instance, is "Gutsy Sports Heroes," and participants can watch 10 hours of content from a curated selection of programming, including movies like "Creed II" and "The Natural," to earn their rewards.
• Rewards come in the form of a $5 Amazon credit that can be put toward Cheez-It products. Members must enroll again each month as the theme and viewing challenges change. The program is limited to U.S. consumers.

Dive Insight:

With the new rewards program, Cheez-It Snap'd looks to tap into the surge in streaming video viewership, while fortifying its brand position as a snack that compliments such viewing occasions.

Launched last year, the thinner, crispier take on Cheez-It crackers was partially informed by data around binge-watching habits, and has frequently leaned into those consumer insights to guide its marketing strategy. Snap'd & Stream is billed as the first rewards program of its kind offered through Amazon, and the rollout is well-timed.

Streaming has grown even more popular in recent months due to the coronavirus pandemic, and the promise of snack rewards for simply watching TV shows and movies online could create a draw for consumers who are stuck at home with little to do. U.S. households with a streaming subscription grew 2.5 million to 74% in Q1 2020, The New York Times reported, while linear TV ratings have dipped in the absence of live sports and new programming.

For Amazon, the Snap'd & Stream partnership shows the platform deepening its brand relationships as it faces mounting competition in the streaming video space, including through the launch this week of NBCUniversal's Peacock, which comes with an ad-free tier. The rewards system leans into a strength particular to Amazon: a massive e-commerce business that is seeing a pandemic windfall.

Amazon Prime Video also doesn't run ads in a traditional sense — except for pre-rolls for its own content — but the service, like rival Netflix, has been working on more robust brand integrations. Other streamers have similarly tried to crack the formula on how to market around binge-watching, specifically.

Hulu late last year introduced an ad format that leverages machine learning to identify when binge-watching begins and serve up contextually relevant ads during the session. Cheez-It Snap'd was a launch partner.

As with the Hulu binge ads campaign, Snap'd & Stream represents the type of investments large packaged foods marketers like Kellogg are making to seize on younger audiences who are cutting the cord more frequently, while showing a preference for snacks and comfort food under the pandemic.