Around the arc. Sometimes due to the finishing on the bat the antisuff does not stick too well around the arc, so I generally give a light sanding around the arc and this helps in getting a better / stronger bond with the willow near the arc.
A hammer edge or similar scuff sheet is beat put before the knocking in as it being harder ir does not take shape to stick to the dents from the knocking.
If you like to knock you bat in before putting the antiscuff, then use either the normal clear antiscuff or the newer self healing antiscuff (opaque like the hammer edge but thinner and more flexible).