Telefonica Digital has selected HP’s Aurasma augmented reality (AR) platform to expand its mobile advertising offerings.

As per the deal, Telefonica will integrate Aurasma’s technology into its advertising services.

Aurasma’s technology will be used across Telefonica’s operations in 25 countries, starting with the UK through O2.

Both the firms will introduce new innovations around AR and mobile into the UK market and the capability will be launched to other Telefonica markets in due course.

Telefonica Digital global director of advertising Shaun Gregory said that Augmented reality has the potential to change advertising, transform current static formats and introduce new levels of interactivity.

"It has already demonstrated the power of its technology in thousands of innovative campaigns across the world and we look forward to working with them to further drive the use of this technology in advertising and marketing communications," Gregory said.

Aurasma is part of UK software firm Autonomy and was acquired by HP in 2011.

Aurasma has had over four million downloads, 400 Aurasma-enabled apps and 8,000 partners in the market since its launch in June 2011.

Google and Amazon are investing in their own in-house AR projects, and other firms like UK based Blippar and Netherlands-based Layar have already entered the market.

The total AR market is expected be worth $600b by 2016, according to research firm Semico.