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 JPEG or JPG: Joint Photographic Experts Group. Along with GIFs, the JPEG file format is one of the main graphic formats displayed on the web. JPEGs use a compression method that sacrifices image information to reduce the file size called lossy compression. This means that every time you save an image as a JPEG, some of the original image data will be lost. JPEGs store images in 24-bit color (GIFs only use 8 bits or less) allowing you to save millions of colors. Consequently, JPEGs are better suited for photographs and images with fine gradations of tone and color.
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