Why are they giving away free money albeit small amounts? It's not like they're loaded with banner ads
They ARE loaded with banner ads, and they are giving not just small but absolutely TINY amounts. The money earned from advertising is also quite small so I suspect they don't make much profit either.
I spent over half a year clicking and clicking and clicking on faucets, but if I added up all the BTC I got from them*, it would only be worth about $0.80.
There are much better ways to make money via the Internet. I wouldn't recommend faucets unless you're a beginner that wants to use them to learn how sending and receiving BTC works, or if the faucet has an affiliate program and you have a blog or something that might attract referrals.
*excluding the old Primedice 2 HH faucet, of course.