How We Scaled A New Product On Indiegogo With Facebook Ads


Rheem is a multi-billion dollar manufacturing company based in Atlanta, Georgia. They manufacture water heating and home enhancement products for the US market. One of the products they developed is the Hotwave, which allows homeowners to spray hot water out of their hosepipe, thus helping them clean and finish outdoor chores faster.

They wanted to test demand and potential product-market-fit, so they decided to launch an Indiegogo campaign to generate backers and pre-orders. Despite the 9 month delivery time, we were still able to maintain a 2.80 ROAS (return on ad spend) on a new product. Almost 90% of the revenue was from prospecting traffic from Facebook (people who’ve never heard of us before).

In the case study below we explain how we achieved this result using our 3 Step eCommerce Scaling strategy.

Rheem Facebook Ads Results

Step 1: Analyze

Since this was a brand new product, we didn’t have any historical data of the product to analyze in the ad account. Instead, we studied Rheem’s client questionnaire. We analyzed the research they provided on why their customers buy their products. While analysing the offer, we knew it we could make it a winner straight away. The Hotwave clearly solved a problem many homeowners have. Cleaning takes too long and hot water cleans faster than cold water.

However, the visuals provided and the short attention span Facebook users have would make it difficult to explain the value proposition – how could we show the effect of hot water in a digital ad creative? We knew in our strategy, we’d need to focus a lot on articulating the offer clearly and the everyday problems it solves…

Step 2: Strategize

Here’s the outline of our strategy below

A) Lead with compelling creative + offer

B) Focus on creative testing

C) Scaling with proven creatives

D) Maintaining a consistent ROAS above target without profits falling

The first step when launching a new product is to create a compelling offer for customers to buy now. With the product only being available for pre-order, we led with a discount that was only available on Indiegogo and a DUO and Etailer pack for those looking to buy 2 or 10. The next step was to test creatives. We asked for the client to provide us with product and lifestyle shots – which they did a fantastic job of. We had lifestyle images and videos of:

– Families using the Hotwave

– Pet owners washing their dogs with it

– Homeowners cleaning their exterior

From the client’s images/videos we created compelling video ads and image ads. We needed to show the value proposition of the product and how it can help the customer clean their garden, car, pets quicker and faster.

Here are a couple of examples from our largest revenue-driving creatives:

Hotwave Case Study Creative Examples

Creative and offer are the most important parts of the ad, so after the offer converts, it’s important to continue to test creatives and find winners that can scale and bring in the sales.

Our retargeting strategy revolved around simple reminder type ads. Since the campaign had a final date to pre-order, we were able to use urgency to create FOMO and drive people to pre-order, as the offer was ending soon and only available on Indiegogo. We will test creatives up to 1-2X AOV of spend in our separate creative testing campaign until we find winners that can scale in our main prospecting campaigns.

You can see in the results (at the top of this page) how we’re at a slight loss on our creative testing campaign, but this enabled us to scale right out of the gate on our main scaling campaign with potential winning creatives.

After we started generating initial sales, we used Cost Per Unique Add to Cart (CPUATC) as our leading indicator to know when to pause tests early. To identify which metric we could use as our leading indicator, we ran a correlation calculation to see which metric correlated the closest to ROAS.

As you can see, CPUATC correlates the strongest with ROAS out of the different metrics here.

The closer a number is to 1 or -1, the stronger the correlation. Usually, cost per unique initiate checkout will correlate the strongest with ROAS, however, there was no initiate checkout event on the checkout flow. So on a full attribution window, we can pause creatives that have no sales and CPUATC > $21.04 and be confident that they will not exceed our target ROAS.

Step 3: Optimize & Scale

When we scaled, we were able to go from $140/day to $1.5K-$2.5K/day in spend and drive $5K-$6K/day in revenue. This was after we found winning creatives that scaled with our offer. I’ll explain some of the actions we took to maintain a profitable and consistent ROAS.

1) Advanced Reporting

2) Creative Cycling

3) Automated Rules

The diagram below shows our main daily account report. It provides us with extra metrics such as AOV, Cart CVR, and drop off rate – which ads manager doesn’t show. After we introduced a price-test, we saw how cart CVR and ROAS declined so we reverted back to the original price.

Being able to view every metric on a daily level enabled us to diagnose poor performance and get the ROAS back up.

Creative Cycling

Creative cycling is another key component to maintain a profitable ROAS.

What will usually happen to creatives after sustained spend is that creative fatigue will kick in – this is when the audience has seen your ad too many times and they tune out.

To give a simple explanation, would you pay more attention to an ad you’ve never seen before? Or one you’ve seen for the 20th time – already knowing what the offer will be?

How many times have we switched the TV channel or smashed the “Skip Now” button Youtube when we have seen the same ad?

Quite often I bet.

By looking at your stats and identifying:

a) If first-time impression ratio and frequency have increased

b) Whilst ROAS has decreased

That will show that your audience has tuned out of your creative and that things need switching up. Since we focus on plenty of creative testing, we try to ensure we have at least 3 winning creatives in our scaling ad sets. So that if ROAS drops in our active ads, we can turn the others back on and we’re confident they’ll perform.

Give this a go if you’re finding ROAS is dropping after a recent spell of good performance.

Automated Rules

Another way to auto-scale ad sets and increase revenue is to set up rules to automatically scale ads. These are great to use in conjunction with manual scaling to get extra juice out of your ads when you’re not logged into ads manager.

Rheem Automated Rules Increase Budget

This rule runs every 15 mins and ensures we’re increasing spend and revenue on ad sets above our target ROAS of 2. It’s impossible to be on the ad account 24/7, so automation allows you to increase revenue and profits, decrease wasted spend on unprofitable ads – all without needing to manually login to the account and check.

Time is the most valuable resource we have – don’t waste it on low-level tasks!


So here’s an overview of how we scaled a new product to $69K in revenue in a 30 day period using our 3 step eCommerce scaling strategy. We were able to profitably generate backers for a new product and establish early product-market fit. Rheem now can use the data from the crowdfunding campaign to start manufacturing the Hotwave and be confident it will sell at scale.

Enjoyed the case study? If you need help with scaling your eCommerce brand with Facebook ads and want to drive more revenue, why not have a 1 to 1 chat with us? If you qualify, we’ll do a FREE audit of your ad account. We’ll be able to give you actionable tips to improve your account ROAS and eliminate the bottlenecks that are stopping you from achieving your revenue goals.

And if you want us to completely take the Facebook ads off your plate, and scale your account for you – we may invite you to become a client if we’re a good fit.

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