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Video looks bad on export settings

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Hey guys, its my first after effects question on here and I def need some assistance.

 

I'm doing a how-to video and capturing my screen using Screenium (I also tried Quicktime's capture tool). When I export my video in full resolution, it looks fine as expected. But if I compress to the size of 630x354 the video captured portion looks terrible, almost impossible to see.

 

I exported on Youtube settings in AME and go great results with the 8mbs data rate. So I used those same settings but changed the frame size to 630x354 and it looks bad still.

 

How can a smaller video looks worse than a larger one if they have the same data rate? Why does my video look good everywhere except that compression setting?


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