It is recommended for line art or graphical art because the compression system used favors regular patterns and limited color depth. GIF has a few extra features that make it particularly useful for the web. Interlacing is an attribute that can be added to the file information. This will cause the file to load as a low resolution image quickly, with additional information added to the image as the file loads. This will allow your viewer to see the basic information quickly.
Transparent background is another option that is especially useful for use with logos.
When you export the file you have the option of identifying a color in the image that will display transparent to reveal the information behind it. This format was developed by the Joint Photographic Experts Group in an effort to create a better format for compressing photographic information. JPEG is a 24-bit file format and has a greater capacity to display colors and detail. JPEG separates the image into two types of information, color and detail. JPEG compression looks for blocks of color and applies compression to the block of information.