Think a weak U.S. economy means bad news for digital advertising? Think again. Google, which has become something of a barometer for new media's vitality, posted a strong quarterly earnings report, defying Wall Street skeptics.

Google posted a 30 percent gain in net income, soundly beating Wall Street estimates. While that news may not mean much for those in the advertising business, many had come to see this quarterly report as referendum on Google's paid clicks controversy. For months, Google had been arguing that comScore data on its paid clicks reflected increased relevancy for advertisers, but Wall Street had been worried that a drop off the volume of clicks meant real trouble for digital.

"We are working to improve the quality of search with better algorithms," said Google CEO Eric Schmidt. "Fewer but better quality ads will lead to people spending more and more time online."

With this rough quarter behind it, Google can now focus on two big challenges that lay ahead. First, the company must integrate its DoubleClick acquisition, a process that has already begun. But that task pales in comparison to the Microhoo mess, which has become an industry-wide concern in recent weeks.