1. A method of embedding a digital watermark in image data captured by an imager, wherein watermark embedding occurs on-chip with the imager, wherein the imager comprises a plurality of pixels, and wherein each of the plurality of pixels is filtered to represent a single color, said method comprising: prior to approximating a multi-color value for each pixel, adjusting single color values for select pixels, the adjusting introducing a digital watermark into the image data; and approximating a multi-color value for pixels.