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In this Excel tutorial, Kevin explains how to insert images directly into cells instead of having them float above the worksheet. This method allows images to be sorted and filtered along with the data, enhancing functionality, particularly when organizing information about cookies. Kevin demonstrates the process by selecting a cell where an image for the oatmeal raisin cookie is missing. He clicks on the insert function icon in the ribbon, opens the insert function dialog, and searches for the new image function, showcasing how easy it is to integrate images into the worksheet while maintaining data cohesiveness.