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In this video tutorial, Steve Patterson from photoshopessentials.com demonstrates how to create a popular effect in Adobe Photoshop by placing an image inside text using clipping masks. He mentions that this technique is simple and easy to achieve, regardless of the Photoshop version being used. The first step is to open the image intended for placement inside the text. The image used in the tutorial is sourced from docHub stock. A copy of the background layer containing the image needs to be created.