Another way is DV0049 - ClipArt Selection at…
http://www.contextures.on.ca/excelfiles.html#DataVal

Here's a non vba solution from Jan Karel Pieterse.
http://www.jkp-ads.com/Articles/ShowPicture00.htm

Here’s Ron Coderre’s non-VBA solution…
However, as a new user, if you're not quite ready to jump into the
VBA
programming pool this is an alternative non-VBA solution:
Assumption: Pictures are stored on Sheet2 to be dynamically shown on
Sheet1.
Select Sheet2 and turn off Grid Lines
(ToolsOptionsView tab:Uncheck Grid Lines)
1)For each picture to be displayed:
1a. InsertPicture from file. (select picture and put it in the
sheet).
1b. Select the range of cells that contains the picture.
1c. Name that range of cells, using the prefix "pic" followed by
the
dropdown list text:
Example for a picture of an Elephant:
InsertNameDefine
Name: picElephant
2)Build your data validation list on a cell in Sheet1 and pick one of
the
items.
3)Create a dynamic range name that refers to that cell:
InsertNameDefine
Name: ShowMyPic
RefersTo: =INDIRECT("pic"&Sheet1!$A$1)
....or whatever cell you chose.
4)Copy/Paste one of the pictures from Sheet2 to the display cell on
Sheet1.
5)With the picture selected, type this in the formula bar, then press
[Enter]:
=ShowMyPic
The picture will be replaced by the picture referred to by the
dropdown list.

Ken Johnson