This is just something that started out of playing a bit with the Python Image Library.
Nothing especially original: photo bubbling is around by about 2 years, and probably that too wasn't a new thing.
Anyway, the idea is to start from a photo and a mask, created with the preferred bitmap editor (only red & blue pixels are significant):
and auto generating something like this:
Since the generation of the bubbles is automatic, a number of frames can be created, and then an animated GIF can be assembled with a number of tools: