Giphy is an online database and search engine based in the United States that enables users to search for and share short looping movies similar in appearance to animated GIF files that do not contain any music. Users can locate these videos using Giphy’s search engine.
The origins of things and the history
It was developed in February of 2013 by Alex Chung and Jace Cooke, who is acknowledged as its founders. While eating breakfast together, the two reflected on the increasing tendency of visual-only communication. From then, the concept for the company arose.
Initially, Chung and Cooke created it as a website that served just as a GIF search engine. According to Chung, Giphy attracted around one million users in its first week, dropping to 300,000 in its second week.
It features a feature referred to by its inventors as “conversational search,” which allows users to insert items into their conversations using a search box in their separate messaging programs.
The site transcended its status as a conventional search engine in August 2013, when it enabled users to publish, embed, and share animated GIFs on Facebook. According to the newspaper, PC Magazine subsequently selected Giphy as one of the top 100 websites of 2013. Three months later, Giphy joined with Twitter, allowing users to share GIFs by simply posting the URL of the GIF they wanted to share.
Giphy’s Series A fundraising round took place in May 2014 and resulted in the company raising $2.4 million. Investors like Quire, CAA Ventures, RRE Ventures, Lerer Hippeau Ventures, and Betaworks participated.
It acquired the GIF messaging service Nutmeg in March 2015 as one of the company’s initial significant steps toward entering the mobile sector. It occurred simultaneously with the launch of Facebook Messenger’s application development platform when the site and other unique apps made their debut.
Giphy’s second mobile application, GIPHY Cam, was introduced in August 2015. This application permits users to create and share GIFs on social networks.
It secured $55 million in funding at a valuation of $300 million in February of 2016.
Giphy made public a variety of figures in October of 2016, including claims that the website had 100 million daily active users, that it delivered more than 1 billion GIFs daily, and that visitors viewed more than 2 million hours of GIF content daily.
The site announced in July 2017 that it had 200 million daily active users across both its API and website, in addition to over 250 million monthly active users on the website by itself.
Chung announced during a February 2019 event in New York City that Giphy was considering an alternative advertising strategy to Google’s, which serves advertisements to users based on the content of their recent search histories. The intention is to include advertising in private messages. Giphy intends to increase its market share by capitalizing on the fact that the GIG database is now integrated into most chat services.
The acquisition made by Facebook
Facebook Inc. (formerly known as Meta Platforms) was said to have acquired Giphy for $400 million in May 2020. This information became public in May of that year. Until recently, Facebook and its services accounted for roughly half of Giphy’s total traffic. Despite Facebook’s assertion that there will be no immediate changes to the service, Giphy was slated to be integrated with the Instagram crew. Following Facebook’s acquisition of Giphy, the display advertising program was discontinued.
Due to Facebook’s recent privacy violations, the purchase was subject to scrutiny. After becoming concerned that the deal would have a negative impact on existing competition, the Competition and Markets Authority (CMA) of the United Kingdom launched an investigation into the matter. An enforcement order was issued by the Competition and Markets Authority (CMA) in June 2020, which prohibited the full integration of Giphy into Facebook awaiting a subsequent judgement.
In August 2021, the CMA made public its preliminary findings, which stated that there was a possibility that Facebook would pull Giphy’s services from competitors or require them to provide additional user data as a condition of service. This information was disclosed in light of the fact that the CMA had found that there was a possibility that Facebook would do either of these things. It was done in the context of the investigation being conducted by the CMA. In addition, it indicated certain concerns over Facebook’s advertising services’ market dominance.
On November 30, 2021, the Competition and Markets Authority (CMA) issued a judgment requiring Facebook, which had changed its name to Meta, to sell its part in Giphy. On July 18, 2022, a judge voided the order barring the forced sale, prompting the CMA to re-examine the situation.
It collaborates with companies to host GIFs that may be utilized as promotional content on social media sites. In addition, the organization created artist profiles that may be seen on the internet. These profiles allow for the attribution of GIFs to their creator(s).
In September 2014, Giphy and Line collaborated to organize and conduct the first-ever sticker design contest. LINE and GIPHY have hired a collection of digital partners to assist in the event. In this project, Tumblr, Fox ADHD, Frederator, Cut & Paste, the New Museum, Eyebeam, Rhizome, Pratt, The Huffington Post, and Dribbble all work together.
Straight Outta Compton, the most recent film based on the NWA, was promoted in August 2015 by Universal Studios and Giphy through the release of six animated GIFs.
Giphy has partnered with over 200 businesses and brands, allowing them to upload all previously-created content on their own branded channels. Companies like Disney, Calvin Klein, General Electric, and Pepsi are Giphy’s partners.