As Slynky pointed out, warping the text is going to take alittle more effort.

If you really want to push the image to the next level and make the type appear as if it's a part of the banner:
First, make your type go along the path you've created.
Second, make a copy of the type layer and "rasterize" it. (Turn off the view of your original type layer so you only see the effects done to your raster type)
Third, change the blend mode on you raster type layer to Overlay.
Fourth, select "Liquify" from the Filter menu and click the "Backdrop" checkbox to show the banner onion-skinned. (This will allow you the see just how much liquifing you need to do to distort the type enough to follow the folds and bends of the banner.)

Play around with the settings in the liquify filter and with a little practice and effort, you'll amaze your friends and family (not to mention co-workers and your boss!)

Now start pushing those pixels around!!

:)
retrocity