Image compression reduces file size by encoding pixel data more efficiently. An uncompressed image stores every pixel as raw color values, which is accurate but wasteful because most images contain large areas of similar colors, repeating patterns, and gradients that can be represented with far less data. Compression algorithms identify this redundancy and encode it more compactly without affecting what the eye sees.
The output quality depends on which type of compression you apply. Understanding the difference between lossy and lossless compression is the most important technical concept for anyone compressing images regularly, because choosing the wrong type for the wrong use case produces either unnecessarily large files or visibly degraded images.
Lossy vs Lossless Compression: Which One Should You Use
Lossless compression reduces file size without discarding any image data. Every pixel in the compressed file is identical to the original. The file size reduction is more modest - typically 20 to 40 percent - but the image is mathematically identical to the source. PNG is the most common lossless format. Use lossless compression for logos, icons, screenshots, illustrations with flat colors, and any image where pixel accuracy matters.
Lossy compression achieves larger file size reductions by permanently removing image data that the human eye is unlikely to notice. JPEG uses lossy compression. At moderate quality settings (70 to 85 percent), the file size reduction is typically 60 to 80 percent and the visual difference is imperceptible in normal viewing. At very low quality settings, compression artifacts become visible - blocky areas, color banding, and soft edges on text. Use lossy compression for photographs, product images, and any photographic content where exact pixel accuracy is not required.
The most common mistake in image compression is applying lossy compression to logos or text-heavy images. The artifacts are especially visible on sharp edges like letterforms and geometric shapes, which is exactly where JPEG compression performs worst. Always use PNG or WebP lossless for logos and UI screenshots.
WebP vs JPEG vs PNG: Which Format Compresses Best
WebP is the modern format that outperforms both JPEG and PNG in almost every situation. Google developed WebP to provide both lossy and lossless compression at significantly better ratios than older formats. At equivalent visual quality, WebP files are typically 25 to 35 percent smaller than JPEG and 20 to 30 percent smaller than PNG. WebP also supports transparency (like PNG) and animation (like GIF). Browser support is universal across Chrome, Firefox, Safari, and Edge as of 2024.
JPEG remains the most compatible format for photographs because of its universal support across every device, platform, email client, and image viewer. If you are sending photos via email, sharing to platforms with unpredictable format handling, or working with clients who may open images in older software, JPEG is the safe choice.
PNG is the correct choice when transparency is required, for screenshots and UI images, and for any image containing sharp edges, text, or flat color areas where lossy compression artifacts would be visible. PNG files are larger than JPEG for photographic content, but for their intended use cases the larger file size is the correct tradeoff.