Source: https://support.office.com/en-us/article/Add-a-picture-as-a-background-watermark-in-Word-2016-for-Mac-877d5700-b156-4346-bdbc-dee32fdb3a40?ui=en-US&rs=en-US&ad=US

To insert a background picture quickly, add it as a watermark. If you want more options for adjusting the background picture, insert it as a header instead.

Add a background picture as a custom watermark

This method is fast, but it doesn’t give you many options for formatting the image.

  1. Click Design > Watermark.058ac87a-f2db-4552-8698-764e577eb9d2
  2. In the Insert Watermark box, select Picture > Select Picture. Browse to (or search for) the picture you want to use as a watermark, and then click Insert.
  3. Next to Scale, make sure Auto is selected and Washout is unchecked (unless you want a very faint image), then click OK.d08c3a3a-cacf-41df-bbf8-fb70c4c94861

Add a background picture with more formatting options

Inserting a background picture as a header is a bit more involved, but it gives you more options for adjusting the image.

  1. Click Insert > Header > Edit Header.
  2. On the Header & Footer tab, click Picture from File.
  3. Browse to the picture and click Insert.
  4. On the Picture Format tab, do the following:
    • Click Position, and then click the centered option under With Text Wrapping.
    • Click Wrap Text > Behind Text.
    • Select any other options you want. For example, to give the picture a washed out look so it doesn’t compete with the text, click Color, and under Recolor, click the Washout option:81c488f3-1b41-4b15-b4d4-4d50d000a69a
  5. On the Header & Footer tab, click Close Header and Footer.9d56593b-8d45-4896-a116-909d9ec85cbd

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