Phygital Worlds: When reality and virtuality merge

Augmented reality enhances the real environment with digital content that is context-sensitive and linked to it. AR experiences are becoming increasingly suitable for everyday use: smart AR glasses display navigation or information directly in the field of vision, and AI functions generate or personalise content spontaneously according to context or user requests. One example of this is Meta's Ray-Ban Display Smart Glasses, which display news, live translations and directions directly on the lens – a step towards hands-free, situationally relevant AR experiences.

Marketing and media companies are using AR to increase interaction and attention: social AR campaigns achieve higher engagement rates and brand loyalty because they actively involve users rather than passively informing them. Games and experiences such as Niantic's Peridot experiments also show how AR interactions are enriched with real-time environments and AI elements.

For brands, this opens up the opportunity to make content situational, physical and directly experiential – for example, through AR overlays in city centres, on-site product explanations or interactive presentations at events. At the same time, the challenge lies in designing these experiences to be content-rich, context-sensitive and brand-coherent, rather than degrading them to mere gimmicks.

Virtual worlds are entirely digital spaces in which users interact, explore and experience content together as avatars. They are becoming increasingly important as social, narrative and interactive spaces for experiences. Events such as the IMMERSIVE X 2025 festival series bring together creative minds and communities to experience and discuss immersive technology, live performances and XR culture in virtual environments.

Brands and media use these spaces for specific engagement formats: virtual showrooms and persistent brand spaces are emerging as permanent meeting places where users can explore products, interact or participate in digital events. At the same time, digital fashion worlds and avatar economies are gaining traction; platforms such as DRESSX combine virtual fashion experiences with social interactions and digital identity formation.

For media companies, this means that content can be consumed not only linearly, but also spatially, socially and participatively – for example, in joint VR sessions, hybrid events or persistent brand communities. The strategic challenge is to connect these virtual spaces with clear narratives, organisational logic and long-term community loyalty, rather than treating them as short-lived experiments and thus losing their impact.

Post-screen interfaces shift interaction with digital systems away from the screen and towards natural signals such as speech, gestures, gaze or context. Interfaces are increasingly fading into the background and becoming part of the environment, while AI-supported systems interpret multiple inputs simultaneously and respond depending on the situation.

Specific applications show how close to everyday life this change already is. Live translation functions via earbuds from Apple and Google make it possible to understand conversations in real time without using a display – information is provided directly through audio. XR applications and wearables also combine speech, eye tracking and gestures to control content hands-free and make it accessible.

For media companies and brands, this creates new, contextual touchpoints beyond traditional interfaces. Content can be delivered depending on the situation, experienced without barriers and seamlessly integrated into everyday life, public spaces or events. The key here is to think of interaction not as a technical function, but as part of a consistent content and narrative logic.

Spatial AI describes AI systems that capture, interpret and respond to their physical environment in real time. The combination of computer vision, sensor technology, audio signals and AI models creates a spatial understanding that goes beyond mere object recognition and incorporates situations, movements and context. As a result, digital systems no longer operate in isolation, but are embedded in real environments.

Specific applications show how spatial AI is already being used: platforms such as Niantic use spatial AI to accurately capture physical locations and deliver context-sensitive AR experiences, for example in location-based games or web AR installations. With Omniverse and spatial computing frameworks, NVIDIA is also focusing on AI models that digitally map and simulate real spaces – for training, media productions or virtual set extensions, for example.

edia companies, spatial AI opens up new forms of spatial staging. Content can adapt to the movements, attention or locations of users – for example, in exhibitions, events or urban installations. The strategic challenge is not only to use spatial intelligence technically, but also to integrate it specifically into dramaturgy, storytelling and user guidance.