Short name for "Favorites Icon". It's an icon associated with a particular website or webpage. In most browsers favicon appears next to the web address of browser's URL bar at the top of the page, also favicons are displayed in lists of bookmarks and tabbed document interface.
In early browsers, identical icons where used for all websites on the web. For example: Netscape Navigator used icon in the shape of folder, in Microsoft Internet Explorer small letter «e». Nowadays most of the browsers designed to use icon of the website you visit.
Firstly, favicon image gets memorized by visitors sometimes better than the name of the site. Secondly it’s much easier for users to open in browser multiple tabs; page title of the site is usually not visible, but favicon allows determine under which tab needed webpage is hidden, thus significantly saving time for switching between opened earlier websites.
Most people bookmarking webpages and on the bookmarks list, favicons are good graphical reminders of their favorite websites.
For Windows users Internet Explorer has advanced feature such as creating shortcut icon to any particular website or needed webpage simply by clicking on favicon in the address bar and dragging it to the desktop panel.
Another positive aspect it has added for website owners. Favicon has become a part of the face of website. All well known brands have their unique logo by which they can be easily recognized. Favicon giving to websites an identity by which it becomes recognizable for internet users.