Choosing text or an image
A text watermark is best for status and warnings, DRAFT, CONFIDENTIAL, SAMPLE, DO NOT COPY, because you can set the wording, angle, size, color and transparency in seconds and it stays razor sharp at any zoom. An image watermark suits branding: a company logo or a faint seal placed across the page. For an image, a PNG with a transparent background sits cleanly over the content, while a JPG carries a solid rectangle that can look boxy. Pick the type by intent first, then dial in opacity so the mark is visible without fighting the words underneath.