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Dear Arn-WOT,
Good day! Thank you for posting your query in our community.
Per your description, you want to insert image in Excel and make the size of the workbook not too large.
I tested it on my side, here are my results:
Image size: 43.4KB
File via Insert > Pictures > This device:54.7KB
File via IMAGE formula: 55.9KB
Based on my test result, it seems that the file which directly insert the image is smaller than the file which use the IMAGE formula.
Given this situation, you may could try to compress pictures in Excel: Reduce the file size of a picture in Microsoft Office - Microsoft Support
Sincerely,
Jazlyn | Microsoft Community Moderator