A system and method for localizing an area of interest likely containing a digital watermark is disclosed. Image frames may be segmented into multiple tiles. A pixel having the maximum grayscale or other value and a pixel having the minimum grayscale or other value in each tile may be identified. Maximum and minimum image maps may be generated from the image frame by replacing each tile with the respective maximum and minimum grayscale or other value pixels. A background map may be generated based on a moving average of the grayscale values of the pixels in the image maps. Foreground map(s) may be generated based on the difference of the values from the image maps to the background map. A region of interest may be determined based on the background and foreground maps and provided to a watermark decoder. Content contained in the digital watermark may be read.