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This video tutorial demonstrates how to add a watermark to a PDF file using an online tool. By following the steps outlined in the guide, users can easily add either text or image watermarks to their PDF files. In this example, text is added as a watermark with options to choose the font, size, position, transparency, and rotation. After adding the watermark, the PDF file can be downloaded with the watermark applied. The process is shown to be straightforward and effective in customizing PDF files with watermarks.