GIF Images
GIF files are always reduced to no more than 256 unique colors. The GIF format is not suitable for photographic images or images with gradient colors. Because the GIF format has a limited number of colors. GIF images are recommnded for flat color images and text, Web buttons, charts or diagrams, cartoon-like drawing, banners, and text headings.
JPEG Images
Use JPEG images for photographs and other images that have millions of colors. It uses a complex compression algorithm that allows you to create smaller graphics by losing some of the quality of the image. This is called a “lossy” compression because some of the image information is lost when the image is compressed.
The JPEG format is not suited to images with text, large blocks of solid color, and simple shapes with crisp edges. This is because when the image is compressed the text, color, or lines may blur resulting in an image that is not as sharp as it would be saved in another format. So JPEG format is recommended for photographic images.
PNG
Use PNG when you need smaller file sizes less than BMP with no loss in quality. PNG files are very heavy as compared to jpeg and gif but better than BMP. Websites like lifehacker use PNG because their images appear on many another websites so they don’t want loss in quality. The other problem with PNG is that its special features are not well supported by Internet Explorer.
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