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Amplify- How Does Giphy Make Money?

how does giphy make money

We are living in the digital era where our lives are dominated by various devices such as laptops, mobiles, smartwatches, etc. They are devices that help in improving the efficiency of our work and our quality of life, also providing us with entertainment and happiness by connecting us to people. Various applications serve as sources of entertainment such as Whatsapp, Facebook helping people connect with their friends and other people.

New upgrades and updates to these applications help its users enjoy the application and communicate easily amidst each other. One such advancement that revolutionized the concept of online communication was GIF- Graphic Interface Format. A GIF can be described as a small video file without any audio. It has received an excellent reception from the social media community where it is a serious tool with many interesting gestures. Giphy is a search engine dedicated only to find out the various GIF’s that have been used and recorded. Here are a few insights to eager readers wondering “How Does Giphy work?” and “How does Giphy make money?”

Evolution of Giphy

Giphy came out in 2013 as an exclusive search engine for GIF files and was introduced by Alex Chung and Jace Cook. They had a collection of 15000 GIF files when they started and have grown exponentially from there to a collection of over 1 billion GIF files used by over 100 million users. Giphy was initially integrated into Twitter to help its users share GIFs by sharing the link on Twitter.

The Giphy business model is supported by a huge amount of investments supporting its innovative idea from crowdfunding accelerating its growth in the field of social media. Giphy soon acquired a Nutmeg, a GIF messaging service, marking its entry to the mobile entertainment sector. The growth of the Giphy business model was ushered further by the advent of GiphyCam, an application allowing its users to record video and make GIFs. The level of personalization offered by the app attracted more people to the application, especially in the young demographic. Giphy soon was integrated into most social media applications like Instagram, Whatsapp, etc. increasing its outreach. In May 2020, Facebook purchased Giphy and integrated it to the wide range of applications and services managed by Facebook exploring its potential.

Giphy Business Model

The Giphy Business Model worked on a Pre revenue-based model, offering its services for free to users. Investors often pondered over “How does Giphy make money?” and “How does Giphy work” before listening to the sound strategic approach of the owners which convinced them to invest in their brainchild. The ultimate motive of Giphy was to expand to social media spaces where GIF’s had not pervaded, widening its customer base to completely dominate the GIF industry. They worked on the investment capital and reeled in contracts with various franchises and productions in Hollywood allowing them to use the video clips in movies as GIFs. The marketing ability and potential exhibited by Giphy combined with the determination to succeed led to the enormous, unprecedented spread of Giphy beyond the speculations from critics on “How does Giphy work?” and “How does Giphy make money?”.

The Giphy business model was met with criticism during its formative days with people often wondering “How does Giphy make money” while its makers focused on long-term goals. They had to break down walls as they introduced the new and upcoming trend of 6-second advertisements cutting down their duration and offering the crux of the advertisement innovatively.

User-Centric Growth

Giphy is primarily motivated on spreading its content across different media platforms, customizing itself to suit the requirements of its users. They were adamant of not adultering their application with advertising and promotions as they felt it would lead the users away from the application. The focus of the application was only on user gratification by acting as a tool to better communicate with their peers. The Giphy business model works to help companies and organizations send their message across to the people, as a part of their brand experience through a memorable, funny, and interesting GIF. Companies that were reserved about the ability of GIFs from Giphy to produce an impact on customers often thinking “ How does Giphy work?” and “How does Giphy make money?” soon realized its potential in being able to create unique brand experiences for many enterprises.

Giphy, handles revenue the same way all search engines do, operating on the sectors unfilled by Google. It contributes to nearly 10-15% of Google’s net traffic, growing to a bigger customer base with every new avenue they spread to.


Giphy has evolved to become the dominant industry leader in GIFs, leading past its competition in various aspects such as outreach and content. The Giphy business model is based on investments from various investors and capitalists allowing them to provide their services for their users for free.

Giphy is an example of how a focused approach towards long-term goals without compromising them for monetary benefits will yield great results. Their single-minded dedication and ability to integrate various media sources on a platform helped them spread their presence to uncharted territories, increasing their user base. They helped people in expressing their emotions and feelings through GIFs and in creating experiences for them to associate with their favorite brands and cherish. The founders of Giphy sold Giphy to Facebook for an enormous value of 400 million$ finally answering millions of people wondering “How does Giphy make money?”.

How to Launch Your Own Business Similar to Giphy?

If you’re willing to start your own animated online communication – you should go with Giphy Clone which has customized features to let you roll with your own Graphic Interface Format business.

Here are some other informative articles explained by NCrypted Websites:

Tejas Joshi
Tejas Joshi
Exploring Marketing World

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