Spam Costs U.S. almost $22 Billion Annually: Findings from the 2004 National Technology Readiness Survey

Spam’s price tag now reaches $21.58 billion annually in lost productivity according to the results of the 2004 National Technology Readiness Survey (NTRS). Findings from the 2004 NTRS, an annual survey that tracks U.S. consumers’ technology opinions and behaviors, indicate that online users in the United States spend an average of three minutes deleting spam each day they check e-mail. Aggregating their usage across the 169.4 million online adults in the United States, this equals 22.9 million hours a week, or $21.58 billion annually when based on the average working wage.

The study was produced by the Center for Excellence in Service at the University of Maryland’s Robert H. Smith School of Business and Rockbridge Associates, Inc.

“We all know that spam is a nuisance, but this allows us to assign a real value to what it is costing U.S. society,” said Roland Rust, director of the Center for Excellence in Service. “A $1 billion solution doesn’t sound so outrageous in the shadow of a $22 billion-a-year problem.”

“This should serve as a loud wake up call to government and business,” said Charles Colby, president of Rockbridge Associates, Inc.

Findings from the 2004 NTRS regarding spam – defined as unsolicited e-mail from unknown sources sent to several e-mail addresses simultaneously – include:

  • Nearly four out of five (78 percent) adults receive spam on a daily basis and 11 percent of the online population receive at least 40 spam e-mails a day
  • Of those online adults who do receive spam, 14 percent open it to see what it says
  • In the past 12 months, 4 percent of online adults purchased a product or service advertised in a spam e-mail
  • Two-thirds (68 percent) of online users sweep their accounts clean of spam at least once a week. More than one-quarter (27 percent) delete spam on a daily basis. A small proportion (13 percent) delete spam no more than once a month.
  • Nearly a quarter of online adults (22 percent) report they tend to get no spam at all

Currently, private companies such as American Online, Yahoo and Microsoft are working to develop solutions to spam including researching ways to verify that the address listed on an e-mail is authentic. Legislation on the state and federal level is also being enacted such as the national CAN-SPAM Act and an October 2004 Maryland law instituting fines up to $25,000, and up to 10 years in prison for convicted spammers.

“The problem with these measures is that generally the private solutions being developed are not universal and the legislative ones are not enforceable,” said Colby. “While nobody really wants to change the freewheeling nature of the Internet, we’re suggesting that there be greater collective impetus to invest in fundamental, maybe even drastic, changes.”

Other areas of the 2004 NTRS focus on the development of m-commerce, e-government trends, e-services, e-health, and overall American consumer technology readiness (willingness to adopt new technologies). For a summary of key findings please go to https://rockresearch.com/press_releases/NTRS_2004.pdf

About the 2004 National Technology Readiness Survey
The National Technology Readiness Survey (NTRS) is an annual study produced by Rockbridge Associates, Inc., and the Center for Excellence in Service at the Robert H. Smith School of Business, University of Maryland. The NTRS, founded by Center for Excellence in Service Senior Fellows, Charles Colby and A. Parasuraman, tracks beliefs about technology and key behaviors related to e-service. The 2004 NTRS was based on a random sample of 1,000 U.S. adults (18 years or older) and was administered in October 2004 by telephone.

About the 2004 National Technology Readiness Survey
The National Technology Readiness Survey (NTRS) is an annual study produced by Rockbridge Associates, Inc., and the Center for Excellence in Service at the Robert H. Smith School of Business, University of Maryland. The NTRS, founded by Center for Excellence in Service Senior Fellows, Charles Colby and A. Parasuraman, tracks beliefs about technology and key behaviors related to e-service. The 2004 NTRS was based on a random sample of 1,000 U.S. adults (18 years or older) and was administered in October 2004 by telephone.

About the Center for Excellence in Service
The University of Maryland’s Center for Excellence in Service is one of the world’s leading service research centers. The center is directed by Professor Roland Rust, and is devoted to advancing research and business strategy related to service. The center is funded by corporate partnerships and grants, as well as grants from foundations and other non-profit sources. More information about the center can be found at http://www.rhsmith.umd.edu/ces/.

About the Robert H. Smith School of Business
The Robert H. Smith School of Business at the University of Maryland is an internationally recognized leader in management education and research for the digital economy. The school offers cross-functional study options in its six academic departments, which include accounting; decision and information technologies; finance; logistics, business and public policy; management and organization; and marketing. More information about the Robert H. Smith School of Business can be found at http://www.rhsmith.umd.edu.

About Rockbridge Associates, Inc.
Rockbridge Associates, Inc., is a leading technology research firm based in Great Falls, Virginia. Clients include Fortune 500 companies, government agencies and associations. Rockbridge conducts primary research and consulting to help with product design, positioning, pricing, and customer satisfaction. https://rockresearch.com

Contact: Angela Toda, University of Maryland, 301-405-8062 Angela_Toda@rhsmith.umd.edu or Charles Colby, Rockbridge Associates, Inc., 703-757-5213, rockinfo@rockresearch.com