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In this Excel tutorial, Kevin demonstrates how to insert images directly into cells instead of allowing them to float above the worksheet. This method enables images to be sorted and filtered alongside the data, enhancing functionality, especially for information such as cookie popularity. To insert an image, Kevin shows that users should first select the desired cell and then click on the insert function icon in the ribbon. By searching for the new image function and selecting it, users can easily embed images, exemplified with an oatmeal raisin cookie image. This method streamlines data management in Excel.