HOSTS based solution requires rooting, right? When I searched for ad blockers they all required root. I looked at AdAway and AdFree Android, but I ended up getting ROM Toolbox Pro (Lite version is free) which comes with ad blocker along with a host of other things.
I kind of sound like a salesman of this app (I'm not) but it is really a nice little app that does a lot in one package. It runs slow but I don't need to use it often, so I am OK with that.
I discovered it also gives control over individual app's processes, such as ad pusher or usage tracker. You can see below that I have disabled certain "receivers" when apps start.
After disabling those receivers I test the apps to make sure they're functional and behaving. So far I have disabled every suspicious receiver I saw and apps seem to run fine. It's quite nice to have a fine grained control over apps.