A "more" comprehensive answer @stinglacson
It starts with the video clip. Make sure the actual clip only captures what you really need. The original clip where the above gif came from is only 1.60 seconds long. The clip (published using VHS quality) is 271KB. The converted gif was 683KB and it was this big: You see all the unnecessary space? I cropped the edges and captured what I just needed and BOOM! Less than the Tumblr gif limit....