The less common way is as a separate external link that you need to download apart from Web pages. The images that appear on your Web page can be image files on your local disk, or on a remote computer. GIF files lack the higher quality of JPEG files but are usually faster because they're more compact and optimized for electronic downloading. You can get images by drawing them yourself, scanning them, or buying them as part of a commercial clip art package. You can also find GIF images out on the Net in one of the many image archives available.
Alternate text is displayed in place of images.
You should specify alternate text for those readers who use text-only browsers. Low resolution images are another alternate to normal image display. You simply specify a low-resolution image to display while the normal image is loading. Place the insertion point where you want the image to appear in your document. The Image Properties dialog appears, allowing you to specify the source location of the image, its alignment relative to text, and the amount of space you want around it.