In the next two parts, I will create the main element of the poster - the title text!
I’ll show you my process to create this retro-style grunge effect.

[1] Typing the text

In the first step, I type out my text using the [Text] tool. I set the color to white.

Read the following article to learn more about [Text] tools.

[2] Creating a bleeding ink effect with vector conversion

I will build up a scratched effect later using textures, but first I create a bleeding ink efect on the text outline to make it look rougher.

(1) I duplicate the text layer that contains the title text.
To duplicate the layer, I click the [Layer] menu or right click the layer and then select [Duplicate layer].
I won’t use the duplicated layer for a while, so I hide it by clicking the eye icon on the left side of the layer.

(2) I select the original text layer and add outlines to the letters.
On the [Layer Property] palette, I click the [Effect] > [Border effect] button, then change the [Thickness of edges] to 3 pixels and set the color to black.

Please read the following article for more about the layer property effects.

Now, the text has black outlines.

(3) Before I process the letters, I rasterize the text layer to create a raster layer.

To do this, I do to the [Layer] menu > [Rasterize].
Note: By rasterizing the layer from the [Layer] menu > [Rasterize], you can directly edit the text like an image. However, you will not be able to make any further edits to the text content or font.

(4) Then, I convert the layer that I rasterized into a vector layer.
After opening the [Layer] menu > [Convert Layer] dialog box, I change the [Type] to [Vector layer] and click [OK] to apply the change.

Note:
When you convert the layer type, the icon on the [Layer] palette changes as follows:

[2] Creating a bleeding ink effect - changing the line style

The letters that I converted into a vector layer look like the below image 1. The white parts have become transparent.

When I click the outlines of the text using the [Object] tool, the vector path appears as in image 2.

I will use the properties of the vector layer to create a bleeding ink effect.

Please read the following article to learn more about vector layers.

(1) Before I bleed the vector layer lines, I register the [Brush shape].
This time, I will use the default [Brush] tool > [India ink] > [Darker bleed] sub tool.

(2) On the [Tool Property] palette of the [Darker bleed] sub tool, I click the tool icon at the bottom to display the [Sub tool detail] palette.

(3) On the [Sub Tool Detail] palette, I click the [Brush shape] tab and click the [Register to preset] button to register the sub tool as a [Brush shape].

I select the vector layer that I converted, and use the [Object] tool > [Tool Property] palette to change the [Brush shape] to [Darker bleed].

When you select the [Brush shape], you can instantly change all the lines on the selected vector layer.
Now the outline of the text looks like wet ink bleeding out.

[4] Merging with the duplicated layer

After bleeding the edges, I merge this layer with the layer that I hid in [2].

(1) I change the color of the duplicated text layer from white to black.

(2) Then, while selecting the duplicated text layer, I merge it with the layer where I bled the outlines of the text.

You can merge the layers from the [Layer] menu > [Merge with layer below] (Shortcut key: Ctrl + E).
After merging the layers, I’ve finished the first step of making my title logo.

In the next part, I’ll show you how to apply a grunge effect to this base.