Images are heavily used by bloggers, but your images are sometimes hotlinked, watermarking your images gives you an option to promote your blog/site even when someone uses your images.

DESKTOP TOOLS

1. WaterMarking Lite : Watermarking Lite is a freeware desktop software that allow you to add watermarks or copyrights to your images from 9 different placement options of the watermark, and the watermark text can also be customized.The software also integrates into the context menu and lets you create watermarks on your images easily.It supports JPG, GIF, PNG and TIF formats. You can also preview the watermark, before applying it.You can also change the placement of the watermark text on any position off the image.It also supports 12 watermark types.The text,color and font can also be adjusted.Download WaterMarking Lite.

WaterMark V2 : PMLabs Watermark is a free watermarking tool that offers advanced features.It offers batch watermarking  of images. Supports the following image formats Bitmap, GIF, JPEG, PNG and TIFF.Features :

• Multi-Layer watermark profiles consisting of image and text layers
• Supports Text layers
• Batch image resizing
• Image rotation function
• Watermark profiles can be saved
• Inbuilt image file explorer.Download WaterMarkV2

Using Windows Live : If you use Windows Live Writer to blog, you can use the inbuilt feature of Windows Live Writer, to water mark images, but WLW supports only text watermarks, and the watermark has to be applied manually to all the images in the post.
How To Do It ?

• Just select the image, select the Effects tab from the Image Properties, or right-click on the image and select “Show Properties” .
• Now under the Effects tab, click on the “+” and choose overlay->WaterMark.
• Enter the watermark text,size,font and position.

ONLINE TOOLS For WaterMarking

1. PicMarkr : PicMarkr lets you to add custom watermark (image or text) to your images online and free.Just upload your photos or from Flickr. You can upload 5 photos at a time with a max total file size being 25MB. You also have the option to resize the images.The watermark could be text,image or tiled and you can also choose the position of the watermark.