Overall, using text is more preferrable, than using graphics (images, pictures, Flash and so on) on a website, because it is easier to understand and remember - and also accessible to the people and the search engines.
But there are some cases, when using graphics is the right thing to do.
When to use graphics
As impose some limits on website performance.
What kind of media to use
The most obvious case of using pictures on your site is when you sell something that people need to see before buying, such as clothes, vehicles, furniture, etc. What is more is that you'd rather use large, high quality images (at about 1/4-1/2 of the screen, the other part being occupied by the description), so that people could look closer at what they are buying.
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