Giphy was founded in 2013 by Alex Chung and Jace Cooke. It was initially intended as a search engine for GIFs. The company though quickly gained popularity and became a hub for creating and sharing GIFs. In 2020, Facebook acquired Giphy for $400 million. That acquisition further solidified the platform’s position as a leading provider of GIFs. According to information from the company’s website it serves over 10 billion pieces of GIPHY contents on a daily basis. And its user base has hit an unprecedented 700 million people.
Giphy Business Model – How it works
Giphy is an online platform that allows users to search, discover, and share animated GIFs. The platform has a vast library of GIFs, including popular memes, TV and movie clips, and user-generated content. Here’s how Giphy works:
- Search: Users can search for GIFs by entering keywords or phrases in the search bar. Giphy’s search algorithm uses a combination of data and machine learning to suggest relevant GIFs based on the user’s search query.
- Discover: In addition to searching for specific GIFs, users can also discover new content through Giphy’s curated collections. These collections are organized by theme, including holidays, emotions, and trending topics.
- Share: Once a user has found a GIF they like, they can share it with friends and family through various social media and messaging platforms, including Facebook, Twitter, Instagram, and WhatsApp.
- Create: Giphy also allows users to create their own GIFs using its GIF Maker tool. Users can upload a video or series of images and edit them to create a custom GIF. They can also add text and stickers to personalize their creation.
- Integration: Giphy has integration partnerships with a range of popular messaging and social media platforms, including Facebook Messenger, Instagram, iMessage, and Slack. These integrations allow users to search for and share GIFs without leaving their preferred platform.
Giphy Business Model – The Value Propositions
The Giphy business model offers several value propositions that make it a popular destination for millions of users. Here are some of Giphy’s value propositions:
- Convenience: Giphy provides users with a quick and easy way to find and share animated GIFs. With a vast library of content and integration partnerships with popular messaging and social media platforms, users can find and share GIFs without having to leave their preferred platform.
- Emotional expression: GIFs can convey a wide range of emotions and feelings, making them an effective way to communicate non-verbally. Giphy’s extensive library of GIFs includes content that covers a broad range of emotions, making it easy for users to find the perfect GIF to express themselves.
- Entertainment: GIFs are a popular form of online entertainment, and Giphy’s platform offers a variety of fun and humorous content that can keep users entertained for hours.
- Creativity: Giphy’s GIF Maker tool allows users to create their own custom GIFs, providing an outlet for creativity and self-expression.
- Brand engagement: Giphy offers businesses the opportunity to create branded content and sponsored GIFs, providing a unique way to engage with consumers and promote their products or services.
Giphy Business Model – The Products and Services
Giphy offers a range of products and services that are designed to make it easy for users to find and share animated GIFs. Here are some of the key offerings from Giphy:
- Giphy.com: Giphy.com is the primary platform for users to search for and share animated GIFs. It features a vast library of content, including popular movies, TV shows, and music videos, as well as user-generated content. Users can search for GIFs by keyword or browse through categories, and can easily share GIFs on social media, messaging apps, or email.
- Giphy for Slack: Giphy offers a Slack integration that allows users to search for and share GIFs directly within the Slack messaging platform. This integration makes it easy for teams to add some fun and personality to their conversations, and can help boost morale and engagement.
- Giphy Studios: Giphy Studios is a creative agency that offers custom GIF and video content creation services for brands and publishers. The team at Giphy Studios works with clients to develop unique and engaging content that can be used for marketing, advertising, or other purposes.
- Giphy Arcade: Giphy Arcade is a collection of simple, browser-based games that feature animated GIFs. These games are designed to be easy to play and share, and offer a fun and engaging way for users to interact with animated content.
Giphy Business Model – How it Makes Money
There are a couple of ways provided by Giphy business model through which the company makes money. They are as follows:
Giphy business model is basically an advertising model. That is to say that it generates a significant portion of its revenue through advertising. The platform offers brands the opportunity to advertise their products and services to its user base. Advertisers can create sponsored GIFs or ads that appear alongside search results. Giphy’s ad platform allows advertisers to target specific demographics, interests, and behaviors. This helps ensure that their ads are seen by the right audience.
The second way Giphy business model brings revenue is through partnerships.
Giphy has partnerships with a range of companies, including Apple, Google, WhatsApp, TikTok and Amazon. These partnerships allow Giphy to integrate its library of GIFs into popular messaging and social media platforms. For example, when you use the Giphy integration in Instagram Stories or iMessage, Giphy earns a percentage of the revenue generated by these platforms.
3. Branded Contents
The third revenue source from the Giphy business model is branded contents.
Giphy offers brands the opportunity to create branded content in collaboration with the platform’s creative team. Branded content includes sponsored GIFs, custom animations, and other content that promotes a brand’s products or services. These collaborations allow brands to tap into Giphy’s expertise in creating engaging and shareable content while also giving Giphy an additional revenue stream.
4. Data Licensing
Giphy’s extensive library of GIFs provides a rich source of data on user behavior and interests. The platform offers data licensing services that allow businesses to access this data and use it to inform their marketing strategies. For example, a business might use Giphy’s data to understand which GIFs are most popular with a particular demographic, helping them to create more effective advertising campaigns.
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