How Does Giphy Make Money

How Does Giphy Make Money? Secret Behind the Successful Business Model 2021

How Does Giphy Make Money? Giphy Business Model: An American search engine allows users to search and share animated GIFs. Users can share their GIFs through the website, Slack, Facebook Messanger, Instagram Direct Message, Twitter Direct Message, Team messaging app such as Skype, group chat app such as Discord.

Giphy is a search engine that aggregates trending GIFs (Graphics Interchange Format) from sites all over the internet and organizes them in one place. If you can think of a word, phrase, or hashtag, chances are Giphy has a related GIF to share with you. Search for content online by typing, pasting, or uploading a photo, photo album, hashtag, or text. You can search for images related to a specific hashtag or term and use the Giphy widget to view trending images.

This interactive GIF search site is much different from other GIF aggregating sites like Imgur and Tumblr because we take much more care in selecting the images we feature on our site. All images used by Giphy are licensed for reposting on other sites. Many of the most popular GIFs on Giphy are screenshots of videos on YouTube, not animated photos.

GIPHY is a search engine for GIFs. Go ahead, “search” it. You’ll find out that Giphy searches not just your website or social media site for the perfect GIF (Graphics Interchange Format) to illustrate an emotion, but the entire internet. That’s right: Not only can you use Giphy to search for a GIF from your favorite TV show, but also YouTube and Reddit.

For a long time in information overload, there was a gap between what people wanted and what they could get. This article will help the users to know the complete information regarding, ”How Does Giphy Make Money?” ”Giphy Business Model”.

Brief Information About Giphy – A Remarkable Platform

Giphy, often known as GIPHY, is an online database and search engine based in the United States that allows users to find and share short looping films without audio that resemble animated GIF files.

People can locate information by typing a keyword or a collection of terms into the search box at the top of the site, which can be reached via the GIPHY Official Website or by downloading its mobile app available on Google Play Store or App Store.

Giphy also shows prominent artists and channels, as well as trending videos. You can save a GIF or video to your favorites or share it across your social sites after finding one you like. People can also use their phone cameras to make their GIFs and stickers.

An application like Snapchat offers a variety of facial filters to users. Giphy also ensures that the best-performing artists are promoted on its site and invites other organizations to recruit them.

How Does Giphy Work?

Giphy is a website and mobile app that lets users find animated GIFs. The term GIF stands for Graphics Interchange Format. Animated GIFs are just short videos.

The popularity of emoji icons or characters, which represent whatever sensations a person is having at the time, has fueled the usage of GIFs in social expression. Several GIFs that surface on social media are soundless, looping video snippets of a character or scene from a television program or movie, which can be considerably more creative and lively than an emoji. When content is in motion, it seems better. There are two types of motion content: videos and GIFs. Because of their length and other aspects need a firm commitment from both the creator and the viewer.

In 2013, Alex Chung and Jace Cooke developed GIPHY, who sought to collect a library of GIFs that could be used in place of words to describe thoughts. They constructed the Giphy website, a search engine, and a collection of over fifteen thousand GIFs. As of 2020, the database and user base had increased dramatically, with as many as seven hundred million people using more than ten billion GIFs nearly every day.

How Does Giphy Make Money?

GIPHY generates money by assisting with the creation and promotion of sponsored GIFs. The content is then pushed on its platform as well as through other analog and digital media.

Its sponsorship money is most likely paid on a campaign basis. For example, a company such as the NFL may pay Giphy in the range of one million dollars to generate unique GIFs and then market them across different sources.

How Does Giphy Make Money
How Does Giphy Make Money



Brands get profit from more exposure. Millions of people frequently view the platform’s content, especially when combined with its multiple third-party integrations.

GIPHY, of course, was looking at other advertising methods. Previously, the CEO Alex Chung frequently mentioned Google as a significant influence, and it considered implementing advertisements based on keywords. As a result, brands would appear when someone searched for keywords such as food, clothes, electronic items, gym, etc.

Giphy can’t make money from licensing or selling the photographs since it does not hold the rights. The only alternative left is to generate revenue by displaying sponsored results to users’ search queries, similar to Google.

GIPHY will find it easy to get users because it has linked its services with various keyboards and social networking platforms. Until now, the brand employs less than 100 people and can cover its costs due to a large amount of funding.

History Behind The Successful Business Model

In 2013, Alex Chung and Jace Cooke founded Giphy. The idea came when they were taking breakfast and discussing the growing trend of exclusively visual communication. Alex and Jace belong from the technical field and have worked at several startups and large organizations; they met for brunch one day in 2012 to explore different ideas.

When Alex and Jace originally created Giphy, the website just served as a GIF search engine.

According to Alex, Giphy garnered roughly 1 million users in its first week before leveling off at 300k. Giphy’s creators invented the term “conversational search,” in which material is introduced into users’ discussions via a search bar in their messaging apps.

Giphy beyond a search engine in August 2013, allowing users to upload, embed, and share GIFs on the social media platform Facebook. According to PC Magazine (An American computer magazine), Giphy was named one of the top 100 websites of 2013.

Later, Giphy linked with Twitter, allowing users to post GIFs by tweeting the GIF’s URL. Giphy earned $2.4 million in a Series A fundraising round in May 2014 from investors such as Lerer Hippeau Ventures, Betaworks, Quire, CAA Ventures, etc.

Giphy bought a GIF messaging service, Nutmeg, in March 2015. It was the first major step of Giphy towards the mobile sector. It corresponded with the introduction of Facebook Messenger’s development platform, in which Giphy debuted with a few other unique applications. In the month of August, Giphy introduced its second mobile application, Giphy Cam, allowing users to make and share GIFs on a social network.

In February 2019, Alex announced that Giphy was looking into an advertising plan different from the Google model, which serves adverts based on users’ search history. The concept is to include advertisements in private messages. Giphy is attempting to capitalize on this situation, as the GIG database has been incorporated into most messaging platforms.

Giphy Valuation and Funding

According to the Crunchbase report, Giphy has received a total of $150.9 million in funding over four rounds. On October 31, 2016, their funding came in the form of Series D.

Giphy is backed by a group of fourteen investors. Among the major investors are General Catalyst, Lightspeed Venture Partners, Betaworks, CMC Capital Group, RRE Ventures, and many others.

Giphy reported in July 2017 that it has 200 million daily active users across both the API and the website, with about 250 million monthly active users on the website.

Giphy has purchased five businesses. On January 1, 2018, they acquired Slash Keyboard. GIPHY is reportedly worth $400 million, according to Facebook, which spent this sum to purchase the firm in May 2020.

Due to Facebook’s prior data privacy breaches, concerns have been raised about the security of Giphy’s 7 million users’ data.

On August 12, 2021, the Competition and Markets Authority of the United Kingdom announced that Facebook Inc. might be forced to sell Giphy after an investigation revealed that the two companies’ collaboration would impede competition in the display advertising industry.

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Some Key Facts of Giphy

  • Alex Chung and Jace Cookie is the founder of Giphy.
  • Alex is also the Chief Executive Officer of Gipgy.
  • Giphy also offers a Giphy CAM app, which allows users to create GIFs from video clips with their smartphones.
  • For Giphy and GIFs, 2016 was the most successful year. When Facebook initially integrated GIFs by allowing users to share them through links, it handed its users to Giphy and other GIF hosting services.
  • Giphy drew over a million views in a single weekend and finally levelled off around 300k individuals. That was when Alex and Jace realized they were onto something.
  • The team’s national visibility enabled them to join startup incubator Betaworks, one of Kickstarter’s original investors, which gave the nascent firm office space and $1 million in seed investment.
  • Both Instagram and Snapchat removed their Giphy connections in March 2018 after discovering a racist comment in the Giphy sticker collection were introduced back in March 2017. Giphy moved quickly by eliminating the image in issue and shoring up its filtration mechanisms and content control. It was back on both platforms within a month.

  • Giphy believe that GIFs are a universal language. They have expression of all the things you love, and the perfect way to show someone what you just saw or felt in a way that can’t be explained in words. It’s been said people can convey more emotion than any other form of communication.
  • So when they set out to make Giphy, their mission was simple: find a way to let everyone in the world create and share the GIFs.

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