You can also use descriptive file names for your images and make sure your keywords are included. Also, you can activate enhanced Image Search feature by logging in Google webmaster tool.
The content around images also plays a major role on ranking in the image search. This is most effective when text is wrapped around the image itself.
As manish.chauhan noted: To optimize images, use a descriptive keyword rich name. Another good technique that can be used to for image optimization is the Title Attribute: (Adding a descriptive title text for your image can help to further optimize the image.)
These are the four things 1. Image file name (much important) 2. title 3. alt attribute 4. Read that at http://www.dumpsquestions.com/webdeveloper/4-tips-for-optimizing-image-in-search-engines
Choose the images carefully, have relevancy. Your images should be in either .gif or .jpg. Reduce the size of your graphics Folder, you are storing your images in, is not blocked by your robots.txt file. Name your images in a way that describes what they are. "ALT" attribute of the image tag ( already pointed) Place a caption directly on top or on the side of your image or under Include images with articles, & press releases, blog post, it can encourage them to link to the image itself straight from your own website
For Offsite Optimization you should do these , For Onsite Optimization You may submit images in some free image hosting site.
To Optimize your use of images: Images may seem like a straightforward component of your site, but you can optimize your use of them. All images can have a distinct filename and "alt" attribute, both of which you should take advantage of. The "alt" attribute allows you to specify alternative text for the image if it cannot be displayed for some reason. Why use this attribute? If a user is viewing your site on a browser that doesn't support images, or is using alternative technologies, such as a screen reader, the contents of the alt attribute provide information about the picture. Avoid: • using generic filenames like "image1.jpg", "pic.gif", "1.jpg" when possible (some sites with thousands of images might consider automating the naming of images) • writing extremely lengthy filenames • stuffing keywords into alt text or copying and pasting entire sentences Avoid: • writing excessively long alt text that would be considered spammy • using only image links for your site's navigation I hope this advice help to some one