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In the video tutorial, Claudio from Visual Moto WordPress teams demonstrates how to compress images to reduce their size using the free online tool, TinyPNG. The tool offers premium options but the free version is efficient. Claudio mentions brands like Lego using TinyPNG. He shares how to use the tool by uploading an image, selecting the desired size reduction, and waiting for the compression process to complete. The tool promises quality image compression without loss and is a cost-effective solution for image optimization.