dnsmasq can read from the hosts file and the whole thing is automatically updated once a week with the latest bad domains (a simple `curl` request is all that's needed)
This method also ports much easier to other *nixes and even Windows since dnsmasq already has wider platform support.
[1] http://someonewhocares.org/hosts/
If I might mention my own site for a minute, I maintain a list of ad server (and tracking server) hostnames: http://pgl.yoyo.org/adservers/
You can view the list as a dnsmasq config file, a BIND config file, and a bunch of other formats.
Although I don't have such devices in my network, I've heard that others do this to their "smart" TV/media box/creepy home surveillance gadgets.
What's your router model?
But that aside I wasn't suggesting that people run dnsmasq on their primary workstation. It's certainly an option, but I personally think it's better to have dnsmasq on a spare machine which is always on (doesn't need to be beefy, a Raspberry Pi would easily be more than capable). That way you can plum your dnsmasq IP into your DHCP server (or even use dnsmasq as your DHCP server as well) so that your phones, tablets and other devices all also benefit from ad blocking / tracking / etc.
Another option with dnsmasq is to run it directly on the router. Some consumer routers, such as Asus, allow you to access the device's command line via telnet / SSH. In the case of Asus, they literally just run dnsmasq for their DNS and DHCP daemons, so you could apply the hosts file directly on the router if you wished.
dnsmasq has the --addn-hosts parameter for that, so you can keep the list in a separate file.