We watermark our images selectively, but for submissions rather than for a site. Basically if anyone wants to steal images from a site they can do it with quality at least good enough for use on other sites, and with serious Photoshop work, perhaps for larger applications. We limit theft to some degree by keeping the image files relatively small on our own site and in submissions, but of course when our clients use our images on their own sites they're bigger and open to theft.
Watermarking is easy enough to do in Photoshop. We do it manually, but there is probably some feature in the program that will let you do it automatically. We just create an extra layer and type onto that, using the related controls to adjust size, color and location. Lots of folks really object to seeing watermarks, but I feel it's justified on submissions. Potential clients can see the image without watermarks once they agree to terms, but in the meantime it slows or limits their unauthorized use before we have a contract.
Some photographers have watermarks on their photos. Is this necessary to protect our images from piracy, or would anything they stole from the site be too poor quality?
If I should be watermarking images how do I do it? In photoshop?
Thanks.