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The video tutorial explains how to reduce the size of GIFs using Photoshop and other tools. It is important to optimize GIFs for online content. Method one involves using Photoshop's Export GIF for Web option, setting the quality to 75 or 85. Method two is to use the Optimozilla online image compressor by uploading and selecting GIFs, which will be auto optimized. The tutorial recommends optimizing GIFs to improve website performance.