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In this video tutorial, the presenter demonstrates how to add a watermark to a PDF using Nitro Pro. They show how to open Nitro Pro, access the watermark option under page layout banner, and choose to manage watermarks and backgrounds. Users can select a predesigned template or create a custom profile. The presenter creates their own profile titled "not final" and adds text as the watermark. They adjust the text's type, size, color, and style, and choose the layout (centered horizontally with manual adjustments for vertical alignment). The presenter also discusses adjusting rotation and adding an underlay for better readability.