Adware

Adware is ad-serving mechanisms in software. It is used by software developers of advertising-supported software that displays pop-up advertisements whenever the program is running. The software does not necessarily harm the computer, but its activity can be annoying.

Infection process:
The software is usually available via free download from the Internet, and it is the advertisement that creates revenue for the serving company. It rarely acts as a stand-alone software product. It is usually included in a freeware or other software packages. Many free ad-supported software also has a paid version without Adware.

The majority of programs that use ad-serving software disclose its existence latest during the installation process. In many cases, the program will not function without the adware component. Some ad-serving software can install itself on your computer even if you decline the installation.

Effects:
Purpose of Adware is to show advertisement on user's screen. It may slow down some system processes, however the main effect is in wasting user's time and effort in closing unwanted ads.

Although usually harmless (while annoying), ad-serving software can install components onto your computer that track personal information (including your age, gender, location, buying preferences, surfing habits, etc.). While this activity is similar to the spyware one, the main purpose is usually to collect data for targeted marketing campaigns.