Will FB’s acquisition of GIPHY add a new dimension to Instagram?
The acquisition will benefit both parties in encashing each other’s popularity and reach, say industry leaders
Adam Mosseri, Head of Facebook’s Instagram team, has said that the $400 million takeover of GIPHY has nothing to do with acquiring of user data.
Since its inception in 2013, the sticker platform has been a favourite among all those who have felt the need for a character to express their emotions. Thus, now being part of Facebook, GIPHY can play the part of adding creative fun on the social networking platform. This now means how one sends and gets GIFs could have a different dimension. According to news reports, GIPHY’s content are viewed by 700 million view daily.
At the end of the day, the acquisition benefits both parties in encashing each other’s popularity and reach, say industry leaders. Prashant Gopalakrishnan, Executive Vice President and National Business Head at Dentsu Webchutney says: “Instagram has taken a creator-first approach in the last couple of months. GIPHY is already deeply integrated with the platform with stickers and GIFs on Stories, which are widely loved and used. This acquisition will give benefits to both: Instagram can double down on the creator culture with GIPHY and GIPHY gets the power of Facebook’s brand relationships to extend branded content beyond traditional formats on its family of apps.”
As part of the announcement, Facebook said in a blog post: “GIPHY will continue to operate its library (including its global content collection), and we’re looking forward to investing further in its technology and relationships with content and API partners.”
The platform further said that developers and the creative community could continue to build new content on the platform. It has also claimed that nearly half of Giphy’s traffic comes from Facebook apps.
Instagram Vice President, Product, Vishal Shah, recently said in a blog post: “People will still be able to upload GIFs; developers and API partners will continue to have the same access to GIPHY’s APIs; and GIPHY’s creative community will still be able to create great content.”
According to Gopa Kumar, COO at Isobar, more access, more engagement, more reach and more integration remain the pillar of strength for such acquisitions. “I believe about 50% of GIPHY's traffic already comes from Facebook products, and half of that from Instagram alone, and this acquisition will eventually enable messaging between all of Facebook's services, including WhatsApp, Messenger, and Instagram seamless as well as engaging for the users. World over increasingly conversations are moving more visual, and this definitely will add more engagement and make it more lively. This integration will also help the discovery of Gifs in Facebook Stories and Messages.”
For Harikrishnan Pillai, CEO, TheSmallBigIdea, there is much more to this $400-million deal. “Let’s understand that GIPHY is already very smoothly integrated into Facebook and it’s products. As a matter of fact, Facebook, Instagram and Whatsapp contribute to 50 per cent of GIPHY’s traffic. So there is more to this $400-million deal. GIPHY has a huge user base but an extremely convoluted ad network. I believe Facebook will use the GIPHY’s base and provide great ad-tech and subsequently monetise it better.”For more updates, be socially connected with us on
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