This article investigates the growing complexity and connectivity between two former separated interaction spaces — the real and the virtual world. It is our attempt to augment the physical world to a world of digitally augmented objects. Moreover we are looking at real products tagged with digital communication units like embedded systems or the RFID technology. To understand these impacts we need to identify the different levels of connectivity between real and virtual worlds and therefore the relationship of a product with its digital counterpart. As a point of departure we define the terms medium and agent to get a theoretical view on the associations in the real and virtual world. We identify the digital identification of virtually enhanced products as a main part for the creation of a new networked physical world where real products are heavily connected to and with their digital counterparts.