You can wrap area text around any object, including type objects, imported images, and objects you draw in Illustrator. If the wrap object is an embedded bitmap image, Illustrator wraps the text around opaque or partially opaque pixels and ignores fully transparent pixels.
Wrapping is determined by the stacking order of objects, which you can view in the Layers panel by clicking the triangle next to the layer name. To wrap text around an object, the wrap object must be in the same layer as the text and located directly above the text in the layer hierarchy. You can drag contents up or down in the Layers panel to change hierarchy.