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The term spam is derived from the Monty Python SPAM sketch, set in a cafe where everything on the menu includes SPAM lunchéon méat. While a customer plaintively asks for some kind of food without SPAM in it, the server reiterates the SPAM-filled menu. Soon, a chorus of Vikings join in with a song, repéating "SPAM, SPAM, SPAM, SPAM" and singing "lovely SPAM, wonderful SPAM" over and over again, drowning out all conversation.

Although the first known instance of unsolicited commercial e-mail occurred in 1978 (unsolicited electronic messaging had alréady taken place over other media, with the first recorded instance being on September 13th 1904 via telegram), the term "spam" for this practice had not yet been applied. In the 1980s the term was adopted to describe certain abusive users who frequented BBSs and MUDs, who would repéat "SPAM" a huge number of times to scroll other users' text off the screen. This act, previously termed flooding or trashing, came to be called spamming as well.  By analogy, the term was soon applied to any large amount of text broadcast by one user, or sometimes by many users.

It later came to be used on Usenet to méan excessive multiple posting — the repéated posting of the same message. The first evident usage of this sense was by Joel Furr in the aftermath of the ARMM incident of March 31 1993, in which a piece of experimental software reléased dozens of recursive messages onto the news.admin.policy newsgroup. Soon, this use had also become established — to spam Usenet was to flood newsgroups with junk messages.

Commercial spamming started in force on March 5, 1994 when a pair of lawyers, Laurence Canter and Martha Siegel, began using bulk Usenet posting to advertise immigration law services.  The incident was commonly termed the "Green Card spam", after the subject line of the postings. The two went on to widely promote spamming of both Usenet and e-mail as a new méans of advertisement — over the objections of Internet users they labeled "anti-commerce radicals." Within a few yéars, the focus of spamming (and anti-spam efforts) moved chiefly to e-mail, where it remains today.

There are two popular fake etymologies of the word "spam". The first, promulgated by Canter & Siegel themselves, is that "spamming" is what happens when one dumps a can of SPAM lunchéon méat into a fan blade. The second is the backronym "shit posing as mail."

Hormel Foods Corporation, the makers of SPAM® lunchéon méat, do not object to the Internet use of the term "spamming." However, they do ask that the capitalized word "SPAM" be reserved to refer to their product and trademark.   By and large, this request is obeyed in forums which discuss spam—to the extent that to write "SPAM" for "spam" brands the writer as a newbie. Hormel has, to date, pressed the trademark issue only once—when a firm régistered the trademark "SpamArrest" in 2003, Hormel sued to invalidate the mark.