IPA: /ˈæd.wɛər/
KK: /ˈædˌwɛr/
A type of software that shows advertisements while it is being used, often provided for free to help cover costs.
Many free applications come bundled with adware that displays ads during use.
Adware is formed from "ad-" (meaning towards or in favor of) and "ware" (from Old English "warian", meaning to be cautious or to guard). The term refers to software that is designed to display advertisements, thus being in favor of advertising.
Think of software that is 'in favor of' ('ad-') showing advertisements, which is what adware does.