Just like the question says.
Here's the video. It's from a recent Progressive commercial.
Is there a way to do this, preferably in Illustrator, without drawing the outline by hand?
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Here's how I'd go about this:
It took me about two minutes to make. You can play around with the position shift if you're not totally happy with the result (eg shift half a pixel right and a full pixel down). Some fonts are better for this than others.
Disclaimer: As stated in the comments, there are more efficient ways to go about this. This is the most simple way though, so if you're a beginner, try to understand what is happening in this answer. Then try to understand how Vincent's, Cai's and jooja's answers make it more efficient. If you're a pro you can skip immediately to using transforms or scripting.
possible in Illustrator, but as it's essentially an effect emulating raster imagery (video tape) it'd be a lot easier and more practical to do this with Photoshop...especially if you use a filter designed to do exactly this.
Google the following terms along with 'filter' or 'photoshop tutorial' to find plenty of resources:
The simplest thing I can think of that you may want to try in Photoshop would be: