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In this video tutorial, the presenter explains the application and differences between various file formats used for storing images such as photographs and diagrams. The key digital imaging concepts covered include raster versus vector graphics, lossy and lossless compression, color spaces, bit depth, and alpha channels. Raster formats store images as a grid of pixels, while vector formats store images as geometric formulas. Raster formats are best suited for storing photographs due to their ability to scale up without losing sharpness, unlike raster images which show jagged edges when enlarged. The video explores file formats such as JPEG, PNG, TIFF, PSD, AI, and SVG to help viewers understand the nuances and purposes of each format.