Wow! I think that making your own background is such fun to do. I have lots of stamps sets to be able to do that. I already had a water colors piece that I was playing with, and as soon as this challenge appeared, I know what I would do. But I have two cards ready to enter today.
The first one is the water color done with stencils and Distress Inks on watercolor paper. I really didn't want to cover it up, so I cut out the center of the tag, and heat embossed the sentiment. Scattered black gems.