Advertising and R D investments are crucial in firms’ operation and performance; however, prior literature provides mixed evidence regarding the association between advertising and R D activities (Farber, 1981; Fischer Himme, 2017; Hula, 1988; Lunn, 1989; Vinod Rao, 2000). Using the sample of 12,705 firm-year observations in the U.S. from 1999 to 2015, I revisit this association and find that advertising intensity is positively associated with R D intensity, consistent with the view that firms perceive these two activities complementary rather than substitute. Next, I examine whether the aforementioned relationship varies across firms’ earnings attributes and focus on earnings persistence and predictability. I predict and find that firms with higher earnings persistence and predictability are more capable of utilizing resources to invest in advertising and R D projects, compared to firms with lower earnings persistence and predictability.