When something is "hard coded" it is static and unchanging on your website, e.g. some plain text that you wrote, or an image that you are hosting - it won't change ever.
The opposite is "dynamic coding", which means you place a snippet of code on your website and this dynamically updates the content displayed to the user when appropriate.
If you hard code an offer banner by using your own image and static text, and then the offer gets changed, your site will be out of date, and that may contravene advertising guidelines. That's why a lot of banners from affiliate networks are displayed "dynamically", i.e. via script code.
If you hard code stuff your offer information will go out of date and this is bad for everyone.
Hope that helps
Rgds
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