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Excel SB is a binary format that can store large amounts of data and significantly reduce file size. The advantage of this format is its ability to save and compress files. In a demonstration with a blank Excel file, the instructor zooms in on 10 columns and saves the existing file before writing a formula. To quickly navigate to the last row, they use a keyboard shortcut instead of scrolling. The video tutorial showcases the efficiency of Excel SB in managing and manipulating data.