What is a watermark in document design?

A watermark in document design refers to a pale or semitransparent graphic positioned behind text. This design element serves multiple functions, such as enhancing the aesthetic appeal of a document, conveying branding (like a company logo), or indicating the status (e.g., "Confidential") of the document. The semi-transparency of the watermark allows the main text to remain readable while still displaying the graphic subtly in the background.

This use of a watermark is particularly effective in professional and formal documents, where it can provide visual interest without overwhelming the primary content. It establishes a consistent visual theme that can help unify the overall design of the document.