Online, that's funny has become a go-to reaction sound for short-form videos, memes and edits where a spoken response feels more natural than a canned laugh or a dramatic sting. Creators use it to punctuate irony, sarcasm and everyday awkwardness, often pairing the line with a still image, a screenshot or a quick cut to a character's face. Its popularity endures because the phrase is instantly recognisable, easy to understand without context and short enough to reuse across formats, from TikTok-style clips to longer compilation videos.