Blurring the lines between what's real and what's computer generated, augmented reality is a new way of interacting with the world and it could become more popular in 2012.

Augmented reality isn't a new technology, it's actually been around for some time now. It's been used in sports programs to show a player's moves. Augmented reality is simply an addition to the real world. You could look up a restaurant and see its location, reviews for the food and what other people say about it. AR isn't made up but it takes current surroundings and adds layers of images or objects to it. AR has been used in fashion shows, business cards, coffee shops, training simulators and cars. The uses for AR are varied and it's going to grow exponentially in 2012.

Reportlinker, a market research website released a report from Visiongain about mobile augmented reality. The report details how mobile augmented reality will impact the marketing industry and how it has changed the way consumers communicate with each other. Visiongain, an independent research company, said that 25% of all app downloads will feature some sort of augmented reality in 2012. The report notes that widespread popularity of AR will reach its peak in 2012 and early 2013. Small software design companies will enter the market and develop their own mobile AR applications.

Several companies are already starting to integrate AR with their marketing strategies. Nintendo's 3DS console uses AR with some of their games. Hallmark has greeting cards that will come to life if you see it using a smartphone or webcam. Macy's used AR in their stores. Shoppers could snap photos of their kids with animated characters from the children's story "Yes, Virginia". Starbucks' patrons could watch their coffee cups come alive with animated ice skaters and a friendly fox with its AR app. The BMW seven series uses AR in a display that shows speed, gas and other gauge readings in the windshield.

The adoption of augmented reality relies on the hardware needed for the app to work. Consumers need powerful smartphones with cameras to make full use of AR. The technology is still being used as a novelty gimmick to get consumers interested in products but as more users switch to smartphones, augmented reality will continue to grow and be used for more applications.