Does SPAM work?
Ok, we have all seen them, messages selling Rolex Watches, Mortgages, Pills to make our bodies smaller and other pills to make our bodies bigger. Seems like we are never satisfied.
I get about 300-500 SPAM messages daily added from various email addresses.
But..does it really work?
Well I found an interesting article from the New York Times as well as a few other websites and the short answer is Yes it does actually work.
Here are some snippets from the articles
"...how stock market spam has exploded over the past two years, making up 15% of all spam messages (as of July 2006), compared to less than one percent of spam back in January 2005.
The reason behind this rapid increase? It works. To the tune of an average return of roughly 5.8% over just two days. Spammers buy up shares of penny stocks, distribute spam touting the particular company, then sell off their shares for a profit.
As hard as it may be to believe, there’s still a fair amount of folks out there willing to act on the investing advice of a complete stranger’s unsolicited email showing up in their inbox."
"The gist of the study is that spam e-mail touting a little known stock actually drives enough people to buy that the stock price moves. A spammer that invests before unleashing the stock-touting spam reduces the risks of market timing and direction of price movement, resulting in returns of approximately 5.79% in only 2 days. Not too shabby. Those people reacting to the spam find themselves buying as the price is rising, selling as the price drops after the spam campaign completes, and losing roughly 5.48% of their money. Not too good. The effectiveness of this ploy is evidenced by Sophos measurements which has seen stock spam explode from a mere 0.8% of all spam in January 2005 to a robust 15.0% of all spam by July 2006."
However, the most interesting part from the NYT article"Spam messages promoting pornography are 280 times as effective in getting recipients to click on them as messages advertising pharmacy drugs, which are the next most effective type of spam."
Now the article was a little dated (July 06) but I still found it humorous. Seems like the stock sellers are trying to break off a little sumpin sumpin from the porn industry.
Logically wouldn't that indicate the best SPAM would be to advertise stocks from a large porn distributor or web hosting company?




