These are reasonable compression settings for an animated thumbnail.
-compression_level 6 -q:v 75
-loop 0 if you want it to loop. Compression level ange is 0 to 6. Quality range is 0 to 100.
https://developers.google.com/speed/webp/docs/cwebp
If you're willing to spend more time decoding, you can make more interesting thumbnails by taking short scenes from the whole video. Check out my gist.
#Creates an animated thumbnail of a video clip
#This script uses scene cuts instead of fixed time intervals, and does not work well for videos with few/infrequent scene cuts
numOfScenes=8 #max number of scenes
sceneLength=1.5 #length of each scene in seconds
sceneDelay=1.7 #time (seconds) after a frame cut to start scene (to avoid transition effects)
for i;do
meta=($(ffprobe -v 0 -select_streams V:0 -show_entries stream=r_frame_rate:format=duration -of default=nw=1:nk=1 "$i"))
framerate=$(bc <<< "scale=3;${meta[0]}/2")
sceneSpacer=$(bc <<< "scale=3;${meta[1]}/(($numOfScenes-1)*2)") #min time between scene selection
ffmpeg -nostdin -ss $sceneSpacer -i "$i" -vsync vfr -vf "select=if(gt(scene\,0.5)*(isnan(prev_selected_t)+gte(t-prev_selected_t\,$sceneSpacer))\,st(1\,t)*0*st(2\,ld(2)+1)\,if(ld(1)*lte(ld(2)\,$numOfScenes)\,between(t\,ld(1)+$sceneDelay\,ld(1)+$sceneDelay+$sceneLength))),scale=320:180:force_original_aspect_ratio=decrease:force_divisible_by=2:flags=bicubic:sws_dither=none,framestep=2,setpts=N/($framerate*TB)" -an -sn -map_chapters -1 -map_metadata -1 -hide_banner -compression_level 5 -q:v 75 -loop 0 -f webp -y "${i%.*}".webp
done