Incremental backups capture only the data that has changed since the last backup, whether it was a full backup or an incremental one. This method is best for frequently updated applications as it ensures that recent changes are captured while reducing the storage space required compared to a full backup after each change. Full backups, though they capture all the data, would require significantly more storage space if done frequently. Differential backups also capture more data than necessary, as they include all changes since the last full backup, not since the last backup of any kind.