Begin by using the Type Tool type some text.
Choose the type and navigate to Type > Create Outlines. This turns my type from text to shapes. You don’t have to Create Outlines to run the Warp effects, so if you think you might edit your type, keep it editable.
Select the text shapes sand navigate to Effect > Warp > Arch.
A dialog box will appear. Check the Preview box to have a look at your text. Play around with the sliders and style until you get the distortion that you are looking for.
After you click OK, you’ll notice that it shows you the original text in blue guides and the warp effect in black text. If you are not satisfied with the results, you can run the filter again and it will discard the current warp effect.
If you are happy with the outcome, you can use the Flatten transparency to turn your text into shapes again. To do this navigate to Object > Flatten Transparency.
A dialog box will appear. Set the Raster/Vector Balance slider to 150.
Now, you have warped text.
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