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Just to add my 2c;
PNG is a really excellent format, and you needn’t use a paid program to create it either. Just use the GIMP, a free open source image editor.

In my experience, PNG files can sometimes/often be smaller in size than higher quality JPGs and GIFs. I have no idea how that works, but it was something I discovered while building my website. I was avoiding them until recently because I knew it had issues in Internet Explorer 6 and lower. Indeed, a good 20% of internet users still have IE6, somehow. I guess the main thing is not to use transparency if you can avoid it. If you can’t, well it will still show on older browsers, but it may have a black or white background and look a bit off.

Hope I helped!