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In this video tutorial, the host demonstrates how to add a watermark to a PDF using Adobe Acrobat Pro. The purpose of adding a watermark is to protect the PDF from being copied or stolen. To add a watermark, open the PDF in Acrobat Pro, go to the right-hand side menu, select "edit PDF," and then choose the watermark option. This process helps to ensure the security of your PDF when sharing or uploading it for others to download.