AAC or MP3??

Hey!
I recently converted all the songs in my library using the 'Convert Selection to MP3' option in iTunes. I was just wondering whether AAC audio is better as i think it uses less space? Am I right? If so, how do you caonvert the files back to AAC?
Thanks

AAC will produce slightly smaller files at the same bit rate but MP3 is a more compatible format if you want to use the files on other devices or make MP3 CDs for an in-car player. Also converting again from one lossy format to another will affect the sound quality. it's always preferable to re-rip from the original uncompressed format rather than converting from one lossy format to another.
You could also make two copies in MP3 and AAC of something you are familiar with and have a listen for yourself. People will have different preferences so it's always best to go by your ears: How to convert a song to a different format
Have a look at these articles, you'll get an extensive comparison of the various formats:
Record Store Review - Quality of AAC v MP3 Part 1
Record Store Review - Quality of AAC v MP3 Part 2

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