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To reduce the gift size using Photoshop and other tools, the tutorial suggests using the Picture Echo to de-duplicate photos, including visually similar ones. GIFs are commonly used in blogs and websites, so optimizing them is recommended. Method one involves using Photoshop's Export GIF for web option, setting format to GIF and quality to 75 or 85. Method two involves using Optimozilla online image compressor for free optimization of GIFs. Upload files, wait for auto optimization, and download them one by one or all at once.