The WAD file-format is a package that contains title information for the Wii, such as System Menus, IOS versions, and channels. Unfortunately, WAD files are often used to distribute pirated channels (both Virtual Console and WiiWare), due to the fact that they are also used by Nintendo and therefore easy to rip from the Wii and, for some WAD files, Nintendo's servers, and easy to create installers for.
Wiibrew does not in any way endorse piracy, and as such these uses of WAD files should not be discussed. If you wish to discuss legitimate WAD files, please ensure you make clear which file you are talking about and what you will use it for, to prevent people jumping to conclusions about your intentions. WAD files are often installed in the Wii System Menu to appear as channels, making launching easier. If a WiiBrew app isn't installed as a channel, it can usually only be launched from the Homebrew Channel itself.