When to use IMG vs. CSS background-image?

Answer 1

If you have your CSS in an external file, then it's often convenient to display an image that's used frequently across the site (such as a header image) as a background image, because then you have the flexibility to change the image later.

For example, say you have the following HTML:

...and CSS:

#headerImage {
    width: 200px;
    height: 100px;
    background: url(Images/headerImage.png) no-repeat;
}

A few days later, you change the location of the image. All you have to do is update the CSS:

#headerImage {
    width: 200px;
    height: 100px;
    background: url(../resources/images/headerImage.png) no-repeat;
}

Otherwise, you'd have to update the src attribute of the appropriate tag in every HTML file (assuming you're not using a server-side scripting language or CMS to automate the process).

Also background images are useful if you don't want the user to be able to save the image (although I haven't ever needed to do this).