The sophistication of these graphics has improved immensely and really pushes the boundaries of reality, even integrating into our every day environment.

This 'augmented reality' is being driven by new technology in games and mobile phones, enhancing what we see, hear and feel and blurring the lines between what is real and what is computer generated.

The term augmented reality was originally used to describe the digital display of aircrafts because it blended virtual graphics onto the physical reality. Computers have improved the detail but the definition is essentially the same now as it was then; the interaction of superimposed graphics, audio and other sense enhancements over a real-world environment that is displayed in real-time.

It is easy to get excited about augmented reality technology. Even though it has been around for a while it was previously just used by 'geeks' within the computer science territory, now it has become much more accessible and, thanks to Smartphone's, brands and marketers are beginning to understand and utilize it.

H&M New York, in partnership with GoldRun, released an app for the Smartphone, where shoppers could virtually try on outfits, take photographs, and post the images to Facebook - creating their own personal look books.

The band Gorillaz got on the AR app bandwagon with their Plastic Beach iPhone app, which gives fans, who are waiting for the concert at The O2, the ability to point their phones at markers and discover pirate ships, submarines, Gorillaz characters and even a plastic beach. Ikea is set to release an app so people can envisage how their rooms would look with certain pieces of furniture, and eBay, in connection with Total Immersion and UK firm Apache, will let you use your phone to try on glasses before you buy.

Thanks to the arrival of powerful Smartphone's and computers with built-in video capabilities this interaction is instantaneous. Apple's iPhone and the Google Android OS are both capable of overlaying information on top of a picture or video.

One of the best-known, practical apps is that built by Layar, which now has over one million active users. Using the phones' inbuilt compass and GPS it will work out where you are and give you a whole host of details including a map, Wikipedia information, Flickr photos, Google searches and YouTube videos, all superimposed onto the picture you've taken of the scene. Yelp uses similar technology to show you ratings and reviews for a restaurant before you walk in.

It's still early days for augmented reality on phones, you have to take a photo before the information is uploaded, but when it is the information given is amazing.

Of course, there are other ways to interact with AR including webcams/ computer video tools. Webcams takes the symbols, which have been added to products, and translates them into images. Adidas, London Fashion Week and Benetton added AR symbols to their clothes and footwear so that when viewed through a webcam they came to life. It is not just brands getting in on the act, anyone can design their own augmented reality business card, adding video, sound, 3D contact details when the recipient puts the card in front of webcam.

Total Immersion software has taken it a step further by using image-recognition and has developed an overlay for baseball cards, so when held up to a webcam shows a 3-D figure performing actions as well as information about that player.

It won't be long until AR graphics can be displayed on any surface, without downloading extra software. Research is already taking place in laboratories to deliver a wearable device or augmented-reality capable contact lenses/ glasses to provide a more convenient view of the world.

When that happens, the streets will be filled with real life scavenger hunts, live games, embedded graffiti and markings that cannot be seen with the naked eye. In fact, this vision is so close there is already a demo of human Pac-Man which, when wearing goggles, lets users chase after each other while making them look like Pac-Man characters.

One drawback with AR interacting with the environment full-time is that we may miss out on what is really around us, tour guides could be a thing of the past and people who do not want to take the AR route may miss out on vital markings and imprints that have been placed on the world.

However, the government is jumping at the chance to be able to see more and are actively looking into AR research to improve security in the UK. The U.S. military are developing a head-mounted display that superimposes information onto the environment, it will overlay blueprints, satellite views and who knows what else directly into the soldiers' field of vision.

With the authorities taking an interest in AR, more people may become concerned about a more intrusive big brother society. There is already image-recognition software that will scour the internet looking for your face and will then draw all the information there is about you from the internet; worrying when you think how much personal information may be on Facebook, Twitter and LinkedIn. Of course, the software won't need to adapt but privacy laws will – so no more offering information to third parties.

The problems are few when compared to the benefits.

Going to a football match will be a personal and unique experience, watch the replay you want, see the analytics from a certain shot, find out the background of a player, and how much he costs. Some stadiums, Twickenham and Emirates, are integrating AR into the seats to offer this extra layer of information to fans.

Colors magazine, Esquire magazine and Wallpaper*US have all had augmented reality editions, with faces coming to life on the cover as well as the ability to interact with games and animation. Book publishers are also getting involved with many using the technology to bring books to life.

Augmented Reality will improve our environment, will mould our shopping experience and will let us interact with the world on a more personal level. All we need to do is wait for the technology to keep up!