Just so you know, Armorgames put those ads there, but they are 100% clean. Those "malicious applets" may be being put up on the advertisements because of you. So, just make sure you don't have anything, like a sort of virus, that is putting these sort of ads besides the site itself, and this problem will be solved.
As far as I have ever found, only one game is a Java applet: Runescape, and that isn't even on the site here.
Applets are pretty risky, so unless you trust the applet owner, don't use it.
webtraffic-analysis.com
The name sounds like what Graham said. Except, I don't see any need to launch an applet to do it: Why do they want unlimited access to your computer? That's what applets ask for.
It is being injected by a third party using the advertisements.
Although AG has a bit of control over advertising, it may have slipped through, but will probably go away.