The term "spyware" generally refers to computer software programs made by greedy and unscrupulous marketing companies that allow them to secretly snoop into your browsing activity, see what goods and services you purchase, and even to cause annoying pop-up ads to appear on your computer screen.
More specifically, Adware is any computer software program that causes unwanted advertising banners to be displayed by the browser to the users screen. Spyware is any software program that sends this marketing data back to a third party without your knowledge asking your permission.