TIFF files headed for the web typically carry two problems at once: they were never designed with web delivery in mind, and they tend to be physically large in pixel dimensions because their source is often a high-resolution scan or a professional camera export. A 300 DPI scan of a standard page easily exceeds 2,500 pixels on its longer side. Converting that directly to PNG keeps every pixel losslessly but does nothing to address the underlying problem that the image is far larger than any website actually needs to display it at. WebP's lossy encoding mode addresses both issues simultaneously: it compresses the pixel data more efficiently than PNG's lossless DEFLATE, and the visual quality loss at reasonable settings is imperceptible for the kind of content TIFF typically holds, whether that's a scanned document or a product photograph.
The compression advantage compounds with image size in a way that's worth understanding. WebP's lossy compression uses prediction and transform coding similar in spirit to JPEG, which means the file size scales with the actual visual complexity of the image rather than the raw pixel count the way uncompressed and lightly-compressed TIFF does. A large, simple scanned document with mostly white background and dark text compresses dramatically in WebP because there's very little visual complexity to encode, even though the pixel dimensions are large. The same large TIFF stored uncompressed pays the full cost of every pixel regardless of how simple the content is. This is why the size reduction from TIFF to WebP tends to be more dramatic on large, simple documents than on small, visually busy images.
The scanned document to website pipeline, end to end
A common real-world path looks like this: a document gets scanned at high resolution and saved as TIFF for archival purposes, because that's the scanner's default and the organization wants a lossless master copy on file. Later, someone needs a version of that same document or image published on a website, embedded in a blog post, or displayed in a digital archive interface. Converting directly to WebP skips the intermediate step of producing a JPEG or PNG first, going straight from the archival TIFF to the format that will actually serve the page. For most TIFF sources without transparency, this single conversion handles both the format change and most of the size reduction needed for reasonable page load times, particularly if the TIFF is also resized down from its scan resolution to something closer to web display size first.
For TIFF files with transparency, the same logic holds but with the added benefit that WebP keeps the alpha channel at a meaningfully smaller size than PNG would. A transparent TIFF graphic that would be several megabytes as PNG often compresses to a few hundred kilobytes as WebP with no visible difference in how the transparent edges render. If the source TIFF is much larger in pixel dimensions than the website needs, the resize tool can bring the dimensions down to the actual display size before or after this conversion, which compounds with WebP's compression to produce a substantially smaller final file than either step alone.