Disclosed here is an interactive audio system and a method of operating the same. In one embodiment, the interactive audio system comprises a processor and a receiving module for receiving a radio frequency (RF) carrier signal associated with a broadcast station. The audio system further comprises a memory storing computer-executable instructions, where the processing module is configured to access and execute the computer-executable instructions to perform a set of acts. The acts include shifting a frequency associated with the received RF carrier signal to an intermediate frequency (IF). The acts include demodulating the frequency shifted portion of the RF carrier signal associated with the broadcast station, the demodulation resulting in an output signal. The acts further include extracting an embedded data from the demodulated output signal, where the embedded data can be utilized to interact with a party associated the embedded data. The acts further include serving the embedded data in conjunction with the demodulated audio signal.