JPEG is the most widely used format for compressing colorful images like photographs, offering high compression rates but with lossy results. PNG supports transparent backgrounds and is a lossless compression format suitable for images with sharp boundaries, such as logos and icons. WebP, developed by Google, is a next-generation image format that provides much smaller file sizes than JPEG or PNG at the same quality, supporting both lossy and lossless compression, transparency, and animation. Using WebP is recommended for modern browsers.