JPEGs (pronounced “jay-peg”) is the best format to use when you want to create a “photographic” image, continuous tone artwork or scanned paintings. This format allows you to reduce an image to a very small file by throwing away extraneous data. At high compression, however, you will notice the loss of quality of the image. GIFs on the other hand should be used for more illustrative images such as text, graphics, cartoons, line-art and flat illustrations.