When creating logos and other bold text graphics, adding a text shape can definitely give your design more flair. The text shape tool makes it easy to do just that.
First, select text by either directly clicking on it in the canvas or by selecting it's layer in the Design Layers palette.
Choose a text shape by clicking one of the buttons. A green checkmark will show whether the effect is enabled.
You can adjust the amount of effect by using the Strength slider. Also, to change the direction of an effect (if it is multi-directional), just move the strength slider to the opposite end.
Text on a circle
One effect that is a little more tricky to use is the circle or curved text shape tool, which is the top left button.
Experiment by using a combination of the Strength, Radius, and Fill sliders to get the effect that you want