These are packages used for WiiWare, Virtual Console games, Wii Channels (like the Internet Channel), and IOS (Input/Output System) custom firmware. They install directly into the Wii’s internal NAND flash memory and appear as a square channel tile on the main dashboard. Why is there a "New Super Mario Bros. Wii WAD"?
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Before installing any WAD file, ensure Priiloader or BootMii is configured on your console. These applications act as a safety net, allowing you to boot into a recovery menu and uninstall a corrupt channel even if the main Wii Menu fails to load.