Although this is a fairly basic question, not everyone is aware of exactly what spyware or ad-ware is. Spyware, usually in the form of cookies or server-side code, installs itself into your browser while you are visiting a certain website. It can also get onto your PC from peer-to-peer file sharing programs like Bearshare, Kazaa, etc. And did you know that Microsoft have actually put their own ad-ware program into Microsoft Windows?
I bet you didn't. If you are getting annoying windows-like popups (and you just re-installed windows or formatted) that say how to stop popups, etc. Then you need to consult my article on how to disable Window's built in ad-ware service.
Why ad-ware and spyware was invented is simple. For as long as their has been privacy, there has been those that mean to invade that piracy. It is a never ending cycle, much like how good battles evil. Companies that produce spyware usually have bad intentions. After all, how can software that resides on your PC monitoring what you do, or trying to access your personal information, be used for a good cause?
It most certainly is not. When you think about it, Spyware certainly could have been made as a preventative measure. Like helping police find pedophiles and logging their steps. Whether it was invented for good or evil, spyware will collect your personal information and sometimes attempt to transfer it without your knowing. If you think you have spyware or ad-ware, refer to my article on getting rid of it.
Ad-ware was created as an extension of online marketing. Likely some online marketing gurus were looking for another way to reach their users. You may remember programs that were popular some time ago, ones that you made money on by surfing the 'net. I myself never made a cent on them, but the way you were paid was through advertising. A small banner would change ads rapidly at the bottom of your screen. The thinking behind this program was you clicked on an ad, and that company you clicked on paid the company who's program you were running money per click. In other words, say you were using Company 45's "Make money by surfing the 'net" program. Company 45 displays random ads across your screen at the bottom. You click on company 1402's ad, so company 1402 pays 45 for that click. And for every click on the ads at the bottom, company 45 collects revenue per click.
The thinking behind this model is you will visit these websites, possibly buy something, become a regular forum poster, whatever. No matter what, by visiting their website you are another user who contributes to the revenue to that site (or not). Although this method of traffic generation is simple, it was one of the first PPC (Pay Per Click) models on the Internet. (If you're into Internet marketing, you'll know this method of PCC is ineffective because the traffic is completely non-targeted).
Anyways, ad-ware works a lot like this model. A company is paid money to get the software onto your PC and then display the ads on your box. A very small percentage will actually visit the URL that appears in the ad-ware dialog boxes, so either the company displaying the ads makes the money through PPC or cost per million (CPM). CPM means every million ads displayed, the company makes a certain amount. PPC is a more effective model, but likely these companies are paid CPM because very very few users will click on the ads. This way the company displaying the ad makes money just by displaying it.
And that's the skinny on ad-ware and spyware, and where they come from. Feel free to use this article on your website.
I am a young, aspiring computer engineer into Internet Marketing, hardware, software, web design, SEO and just about anything related to computers. Please come check out my growing PC forum at http://www.markspcforum.com