Images can be added to a PowerPoint slide either as independent objects or as a background. The advantage of having the image independent is that you can manipulate it more easily: you can position it anywhere on the slide, resize it or crop it. You can also move it in front or behind other objects at will. Setting an image as the background to a slide always places it behind all other objects and since it can't be highlighted like other objects, it effectively gets locked in that position and can't get in the way.
Slide masters often contain background images and, naturally, anything placed on the slide master will also be visible on all slides based on that master. However, background images can also be used on individual slides. Simply activate the slide and then click on the Design Tab of the PowerPoint ribbon. Next, click on the Launch button in the bottom right of the Background group to display the Format Background dialog.
The Format Background dialog contains two sections: Fill and Picture. In the Fill section, you need to click on the radio button labelled Picture or texture Fill. Next, you need to click on the File button to locate the image you want to use as a background. Then, optionally, you can switch to the Picture section and apply effects to the image such as changing the contrast or brightness or recolouring the image as a kind of duotone. If you choose some options and don't like the result, simply click on the button marked Reset Picture.
Having these options available even when the image is inserted as a background is extremely useful. In previous versions of PowerPoint, the image editing options were only available with independent images. By the way, to access the options for editing images which are created by clicking on the Picture button on the Insert Tab of the Ribbon, simply highlight the image and activate the Format Tab of the Ribbon. (This is a context tab and will only appear when an image is highlighted.)
Most PowerPoint users don't even realise that you can also use as an image as the background fill to any PowerPoint text box or shape. Thus, for example, you might want to use an image as the backdrop to your bullet points. To set this up, all you need to do is to is to right-click on the object and choose Format Shape from the context menu. On the left of the dialog box which appears, highlight the Fill category; choose Picture or Texture Fill as the type; click on the File button and locate the image you wish to use as a fill. And it doesn't end there: with a bit of tweaking can even use this same trick on charts and graphs.