In this paper, a new method to achieve better compression efficiency in low
bit-rate video coding is proposed. It is based on a global bit-rate reduct
ion at a macroblock level, optimizing the number of bits to code each macro
block as a whole by means of motion vector and headers size compensation. T
he selection of the best motion vector and different coding modes for each
block of the current picture will be made depending not only on trying to c
hoose the best prediction for the block, but also on the number of bits to
code the associate headers, introducing some kind of penalization in the co
st function. This method improves efficiency on video compression for all q
ualities, but especially for low-quality video coding, whose efficiency imp
rovement can reach 17%, Its implementation is simple, and compatible with m
ost video-compression standards (H.263, MPEG, etc.). Results of the algorit
hm in a state-of-the-art H.263+ codec are presented, and demonstrate that t
he efficiency enhancement is achieved with minimal time-processing increase
, and even decrease, in some conditions.