From your question, I understand that you want to put a watermark and that water mark is an image. But when do you want the watermark - in draft or the final version - is not clear. However, the package xwatermark from Ahmed Musa (Who is active in this forum) is better in handling such cases.
The abstract of the xwatermark documentation:
The xwatermark package puts user-supplied watermarks (graphics and/or
arbitrary texts) on se- lect pages of documents using user-friendly
key-value interfaces. It has more functionality and dy- namism than,
for example, the packages draftcopy, draftwatermark, watermark,
draftmark, wallpaper. More than one (graphics and/or text) watermark
can be placed jointly or independ- ently on the same document page or
on select pages. Watermarks can be placed in the page background or
foreground, and watermarks can conveniently be placed on select pages
as rectan- gular or square tiles, depending on the user’s choice. Some
utility macros, namely, \xwmminipage, \xwmcolorbox, \makecolobox and
\fancypagenos are also provided by the package for handy use in
creating watermarks and for other uses. Watermarks (especially
wallpapers) take their toll on computer resources, especially speed
and save stack size. The packages in the xwatermark bundle (and
beyond) have been optimized as much as currently possible. In many
instances more than one run of the document will be needed to get the
watermarks on the desired pages, especially if the user calls
\lastdocpage to get the last page of the document.
However, the xwatermark has some incompatibilities with scrpage2 as noted by speravir in his answer to this question.
For just text as the watermark, one can use
\documentclass{scrbook}
% \usepackage{draftwatermark}
\usepackage[draft=true,allpages=true,fontfamily=cmr,angle=90,scale=0.2,mark={\fboxsep=35pt\fboxrule=0pt\relax\fbox{-- DRAFT -- }},
color=red!75!green!50,xcoord=-80,ycoord=-20]{draftmark}
\begin{document}
Hello Boulder
\begin{figure}
\centering
% Requires \usepackage{graphicx}
\includegraphics[width=5cm]{example-image-a}\\
\caption{My figure}\label{fig}
\end{figure}
\end{document}

scrpage2. I had no problems with Ahmed Musa’s earlier creationdraftmark(xwatermark’s predecessor), but I putdraftas package option, not in documentclass. – Speravir Sep 23 '12 at 00:44