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Not working in website/website projects or ftp

description

When I right click on an .gif in solution explorer, I don't get the option to Optimize the image, its greyed out.
If I right click on a folder and click "Optimize images" - the output window reports "No PNG or JPG images in selected folder(s)".
If it's an .png or .jpg file then I can choose the option "Optimize image" but the result is the same as above.
 
The data uri option via css stylesheet or by right clicking on the image is never available.
 
It only works in Web Applications.

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