Capsule endoscopy is a promising diagnostic tool for the entire gastrointestinal tract. Since a patient swallows the capsules, their size must be sufficiently small. The principal built-in components are cameras, silver-oxide batteries, light emitting diodes, and an antenna for transmitting the video. For diagnosis and treatment, the precise localization of the capsules for specific video frames is required. Recently, static magnetic localization of these  apsules with an integrated permanent magnet showed promising results. However, in the state-of-the-art, relatively large magnets compared to the small capsules were used. Therefore, in this extended paper, the localization performance of a recently proposed optimized differential static magnetic localization method for different-sized discs and ring magnets was evaluated. The ring magnets were designed for integration with the two batteries of commercial capsules. The magnets were evaluated in static and dynamic scenarios to evaluate the performance of the method in a patient’s daily life. It was revealed that the mean position and orientation errors did not exceed 5 mm and 4°, respectively, for all applied magnets except for the 1.5 mm and 3 mm long disc magnets. Moreover, the results indicated that the ferromagnetic batteries of capsule endoscopes increase the localization performance when they are centered within a diametrical ring magnet. Overall, it was revealed that the localization performance of the optimized differential method is significantly better than the state-of-the-art even when the magnet volume is significantly reduced compared to previous work. Therefore, it was concluded that a 5 mm long disc magnet or a ring magnet are excellent candidates for integration into a commercial capsule for magnetic localization and yield the advantage of being passive magnetic sources.