A method of integrating audio and an encoded medium using a handheld interactive apparatus. The method comprises activating an audio recording mode of the interactive apparatus, the handheld interactive apparatus having a housing containing an optical image sensor, an audio input device, and an audio output device; and imaging the encoded medium with the optical sensor to create a playback-enabling audio annotation corresponding to the recorded audio. The encoded medium comprises a printed coded data pattern enabling identification of the encoded medium and of a location on the encoded medium during the imaging.