Google Docs allows you to add both text and image watermarks. Text watermarks work well for indicating document status like “Draft” or “Confidential”. Image watermarks like logos help reinforce brand identity. Choose the type that best suits your purpose.
Ensure Visibility without Interference
The watermark should be clearly visible but not interfere with readability of the actual content. Avoid watermarks that are too big, opaque or colorful. Adjust transparency, size and placement appropriately.
Maintain Consistency
Use the same watermark across documents in a series or meant for a specific audience. This helps establish cohesive branding and recognition.
Protect Sensitive Information
Watermarks can help deter unauthorized sharing of confidential documents by identifying leak sources. Use dynamic watermarks to display user info.
Check Compatibility
Google Docs preserves watermarks when importing/exporting Word docs. But compatibility issues may arise with pageless docs or text wrapping. Test thoroughly.
Leverage Advanced Customization
Further customize watermarks for more flexibility – apply different watermarks to sections, rotate orientation etc.
In summary, carefully designed watermarks can effectively reinforce branding, secure sensitive data and communicate document status. But balance visibility with minimal interference to content.