Good tutorial on using displacement maps.
http://www.designpanoply.com/blog/how-to-conform-text-to-a-surface-using-a-displacement-map-in-photoshop

1. Open the background image
2. Click Filter > Blur > Gaussian Blur and set the Radius to 1 pixels.
3. Click Image > Adjustments > Desaturate to make it black and white.
4. Save your slightly blurred, grayscale image as a PSD
5. Re-Open the background image
6. Add text and rasterize
7. Click Filter > Distort > Displace
   1. Set the Horizontal and Vertical Scale to 10, click OK
   2. A file browser will open. Choose displacement map we created
8. Set the Fill of your text layer to 0% in the Layers panel.
9. Double click your text layer in the Layers panel to open the Layer Style dialog
10. Apply the following Layer Style settings
    1. Style: Emboss
    2. Technique: Smooth
    3. Depth: 100
    4. Direction: up
    5. Size: 11
    6. Soften 2
    7. Shading:
       1. Angle: 30
       2. Use Global Light
       3. Altitude: 30
       4. Gloss Couture: (default diagonal line)
       5. Highlight Mode: Linear Dodge
       6. Opacity: 15
       7. Shadow Mode: Linear Burn (black)
       8. Opacity: 15
11. Color Overlay:
    1. Use the color #86A8CB (or other)
    2. Blend Mode: Linear Burn
    3. Opacity 100%

My result: