To add a text watermark, select Text watermark . Select the language, font, size, and color (including whether you want the text to be semi-transparent. Enter the text for the watermark in the text edit box. Determine whether you want the layout for the text be diagonal or horizontal. Click OK .
Your custom watermark text is displayed blurred behind the text.
If you want to use an image as a watermark, click Watermark on the Design tab and select Custom Watermark again. On the Printed Watermark dialog, select a watermark and then click Select picture .
You can insert an image from a file on your computer, select clip art from Office.com, search for an image on Bing, or choose an image from your SkyDrive storage. For example, we search for Windows icons on Bing.
Select an image from the results and click Insert .
Note: Make sure you adhere to the image usage restrictions for web pages that contain selected images.
To insert images as a blurred image behind the text
Select Washout . You can also specify the scale for images or have Word automatically expand the images by selecting Auto . Click OK to insert image watermark.
Images are inserted behind the text in your document.
Inserting Watermark watermarks for text and files is basically the same on Office, Word 2007 and 2010 versions, it is a little different in the tool / Read at the top of the article to learn more.