Image in article
What would you call an image in a newspaper article that appears in the flow of the article with text wrapped around it? For example an article with two columns — on the right column there's an image with wrapping around it. What would you call it? In-line image? Article in-line image? Paragraph image?
Illustration is the only word that fits in normal English. If you want more technical editing terms, you could try box, figure or image. There is, so far as I know, no one word for an image inserted into an article rather than next to it.
In computer graphic layout, we talk about "in-line images", but I don't think this is a term used and understood by the average person. I don't know if printers have different terminology.