We know that we said that InDesign won’t create new frames, but there is a way to incorporate graphics in your XML placeholder—and that is to create inline frames. Inline graphic frames can be filled in with a graphic just like XML placeholder text.

Again, set up the structure using placeholder XML elements. This time, add an anchored graphic and apply an XML tag to it.

Add graphic elements to the structure of the XML file you plan to export. For each graphic element, add the location of the graphic you want inserted for that element.

When you import the XML, InDesign will duplicate the graphic placeholder, and will import the graphic specified in the corresponding XML element.

The new graphics replace the placeholder graphic in each duplicate of the placeholder text.