The next generation of mobile Augmented Reality applications will go well beyond simply overlaying points of interest, floating post-its and 3D models on the video display of your phone. Mobile AR is becoming a sophisticated medium for immersive games, situated storytelling, large-scale visualization, and artistic expression. The combination of physical presence, visual and audio media, sensor datastreams and social environments blended together with web services offers tremendous new creative possibilities. However, the design challenges of creating engaging, exciting and compelling experiences are quite significant. AR experience designers will draw fruitful inspiration and practical lessons from game design, 3D graphics, architecture and stagecraft, as well as the structure, linking, protocols and openness of the web.
Some of the best research to date on experience design for locative media experiences, was done at HP Labs as part of the Mobile Bristol collaboration. You might find these papers useful and applicable to AR design, as I have.
Technology Experiences: What Makes Them Compelling? Alison Kidd, 2000
Experience Design for Pervasive Computing, Richard Hull & Jo Reid
Experience Design Guidelines for Creating Situated Mediascapes, Reid et al, 2005