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A watermark is an image on the background of data. In general, there is no built-in function or button in Excel by default to insert a watermark in an Excel worksheet. Instead, we have to do this manually from the ?Header & Footer? section in the ?Insert? tab.

Although the name may be confusing, especially in digital world, a watermark is a mark or lettering superimposed onto the photo showing who its owner is: a photographer, a company or a website. It is a technique known already for ages and is still used for example in marking banknotes.

Use a custom watermark On the Design tab, select Watermark > Custom Watermark. Choose Picture Watermark and select a picture, or choose Text watermark and type your watermark text in the Text box. Click OK.

On the Design tab, select Watermark. In the Insert Watermark dialog, select Text and either type your own watermark text or select one, like DRAFT, from the list. Then, customize the watermark by setting the font, layout, size, colors, and orientation. If you don't see the watermark, click View > Print Layout.

On the Design tab, select Watermark. In the Insert Watermark dialog, select Text and either type your own watermark text or select one, like DRAFT, from the list. Then, customize the watermark by setting the font, layout, size, colors, and orientation.Select OK.

You'll need to open the header to select the watermark. Double-click near the top of the page to open the header. Click the watermark to select it. (Try moving the cursor over the watermark until the cursor displays a four-headed arrow.) Drag the watermark where you want it on the page.

Watermarks can be used to protect confidential information and to indicate the validity of a legal document. You'll also watermarks any paper banknote, where they're used to help prevent counterfeiting.