The IAB UK released its 2009 Internet Adspend report this week, declaring that £3.54bn was spent on online advertising last year.

Paid search took a whopping £2.15bn, 60.7% of the total. My previous analysis on Google’s financial results suggests Google made £1.912bn in 2009. That’s an 88.9% market share.

The share is broadly in line with Efficient Frontier’s quarterly reports too, which measured Google’s spend share between 85.9-87.6% last year. The EF report focuses on large scale enterprise advertisers who push their spend across Yahoo and Bing too. SME advertisers skew towards Google, which probably explains the difference.

From these numbers I also estimate that Yahoo took around £162m and Bing around £76m. Google’s domination continues.