Different image formats have different characteristics, such as compression, quality, transparency, and animation. Choosing the wrong image format can result in poor image quality, slow loading times, or compatibility issues. For example, JPEG is a good format for photos, as it offers high compression and decent quality, but it does not support transparency or animation. PNG is a good format for graphics, logos, and icons, as it supports transparency and has lossless compression, but it can be larger than JPEG. GIF is a good format for animations, as it supports multiple frames, but it has limited colors and can be very large. WebP is a newer format that offers better compression and quality than JPEG and PNG, but it is not supported by all browsers. Therefore, you should choose the image format that suits your purpose and audience.