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In this video tutorial, the presenter demonstrates how to annotate an image using an online tool called Good Annotations. Image annotations are helpful for labeling and pointing out specific details in images. To get started, users should search for "Good Annotations" on Google, click the first link (avoiding ads), and navigate to the tools section. Under image tools, there is a link for image annotation, which will be provided in the video description for easy access. The presenter uploads an image, specifically a street view picture of Westminster in London, to illustrate the annotation process.