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Is a webp image still better to use even if after optimized its still a larger file than an optimized jpeg? Or is it better to use the smaller file regardless of jpeg or webp?
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Use whatever is smallest. Though it would be odd for a WebP to be bigger than a jpeg (of the same quality)
Use WEBP and try and keep the image size under 120kb.
Here is the tool you need:
https://www.marcus-aurelius.com/free-image-converter/