Image in Illustrator

Hello,

Silly question, but i do it a different way every time, just because i dont know which one is correct:
When i design a full ad in Illustrator and have one image that needs to be on it, what is the correct way to place the image on the ad/ link the 2 files while maintaining sharpness?

What are the 2 ways you do it?
I place it as an embedded link. Its easy to relink or update that way