After rummaging the internet again for such a question I could not easily answer myself, I was able to get hold of some good answers from Peter McCartney and he also mentioned a support site from Google.
It took me a great deal of time searching for an answer so to try and help others out, I’m going to enumerate my procedure on how I managed to add an affiliate banner to this blog.
First off, find the “Layout” button link on your Blogger Administrator Panel. I would assume that you already know what I meant with “Blogger Administrator Panel”.
You will then see the overall layout of your Blogger Template and will notice that you can add gadgets to certain areas. Proceed by clicking “Add a Gadget” on an area where you wish your Affiliate banner to appear.
The pop-up window “Add a Gadget” will then appear.
This will take you to a configuration pop-up window. You can choose not to add a title, for me it looks better that way. In the content box, add the HTML tag for the banner that your Affiliate provided.
Now view your blog. If the Affiliate banner doesn’t appear, try placing it in a different area, or you might try changing your template. Some of the free templates don’t seem to display the added gadgets well.