"Static" binaries include all the required dependencies built into the compiled output. They operate in a stand-alone fashion and don't require any other software to be installed on the machine. (ffmpeg has a ton of dependencies.) Storing in /opt is just one possibility; I usually put local binaries in /usr/local/bin and /usr/local/sbin. Those directories are in the standard path.
I've both compiled ffmpeg from scratch and also used McMahon's PPA. If you've never compiled software before, I'd stick with the PPA route.
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