Make a Cool Image and Text Design with Compound Paths?

Start by creating two shapes and overlapping them. Then select both shapes and go to Object > Paths > Make Compound Path or press Command-8 (PC: Ctrl-8). Go to File > Place and select an image to be placed within the two shapes. You’ll see that the overlap area is now blank and the other areas are filled with the image. You can now place some text in the blank area, and you are still able to move the image around in the other areas of the frames. Try this with different shapes to create a cool design effect.