Every point spent in a weapon mastery increase your damage with that weapon type by about 9%, increasing the mastery by 8 will exactly double your damage (the damage for each level follows an exponential curve). After you reach 12 in the mastery, the effects given to your normal attack are seriously diminished. You get less then half as much effect from points after 12, so it's probably not worth getting much higher then that.
In addition to your normal attack, of course you will make all the skills linked to that attribute more effective.
This applies to axes, swords, hammers, and bows (bows are linked to marksmanship). All other attributes except primary attributes ONLY affect skills.
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