1.Step.
Create new document, size: 550 *350 px. At first we must create wood textures. To do that, go to Filter > Render > Fibers. Set Variance to 15, Strength= 4, click Ok. You can use Randomize to set morerealistic wood texture.
Result:

2.Step.
Click Ctrl +S to save this texture as psd file. Now we must color our wood. Go to Image > Adjustments > Hue/Saturation. Set parameters like below:

Result:

3.Step.
Texture looks too light, so we need to shade it. Go to Image > Adjustments > Curves. Set parameters like below:

Result:

4.Step.
Activate Channels palette. By holding Ctrl, click on channel RGB, this action will select light parts of texture. Now go to Image > Adjustments > Hue/Saturation. Select Hue to 100, Saturation = – 56. Go to Edit > Fade. Turn down Opacity to 50%. Click Ok and than Ctrl + D, to deselect.
Result:

5.Step.
Our Wood texture is ready, now we must write text. We will use text: Psdeluxe We will use standard font: Comic Sans Ms. I think everybody have this font. So, write your text. After you written your text, select Free transform tool and select best text placement for you.

6.Step.
After you will done your text modification, go to Filter > Distort > Displace. On popup window say Yes, to rasterize text, set Horizontal and Vertical Scale 8 and select psd file, that you saved in 2 step. Now your text look little bit creepy.

7.Step.
Now to make tree bark looks more realistic, we need to curve it. Activate background layer, click Ctrl + A. Go to Filter > Distort > Pherize, set Mode to Horizontal Only and set amount to 60%. Now activate layer with text and click Ctrl + F to repeat this filter to text.

8.Step.
Create new layer, fill it with black color and drag it below background. Now activate wood texture, take Free Transform tool turn down texture width.

9.Step.
Now select Gradient tool, take Linear Gradient. Select Foreground to Transparent gradient. Create new layer. Again take Gradient tool and click in left side and pull to center, that will overshade left side of texture. Do same with right side.
Result:

10.Step.
Now activate text layer and change it Blending mode to Color Burn. Duplicate text layer, to second text layer set Blending mode to Linear Light and set Fill to 30%.

12.Step.
And the last step. Now we must add some layer styles to second text layer. Add Bevel and Emboss, set Depth to 40%, size 5 px, soften 0 px. Click on Gloss Contour and select Cove Deep and that’s all folks. And for more horror effect you can download blood and splatter brushes from brusheezy and add it to our image. So, here is result. We create creepy bloody text on wood bark texture. I hope you enjoyed this tutorial.

Via : Creepy Bloody Text Effects