Microsoft tried to make a big splash next to Google in the world of search when they released Bing the other week.

Behind the noise of Microsoft’s $100 million ad campaign, search is enjoying larger innovations that mix real and virtual worlds—practically making the two indistinguishable.

Layar is a new mobile app that boasts augmented reality, mixing a phone’s camera, compass and GPS to literally add a layer of search directly on top of what you’re looking at around you. The above video details the experience.

All in all, I’m reminded of the cartoon-meets-human dynamic of Who Framed Roger Rabbit? when watching the video. It’s also an impressive step up from the SnapTell, the free iPhone app that pulls search results from snapped photos.

You know you want this app, but you can’t have it yet. Well, unless you’re in the Netherlands. However, Layar is busy at work to have their app ready for the new iPhone 3G S, the only iPhone with the digital compass feature.

Oh snap.

MobileSEO

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