Let's say I have your own blog running on dastx.me, and I wanted some ads from adgiant.com.
As an adblocker you've added `* .adgiant.com` to your blacklist and I'm an asshole and try to circumvent such adblocking measure. Them young millennials and their tech. Stealing me out of my money!
So I go to adgiant.com and ask them if there is something i can do. adgiant.com asks me to add a new DNS record of `CNAME definitely-not-an-ad-subdomain.dastx.me -> terribleads.adgiant.com`. This way, whenever I wanna call terrible-ads.adgiant.com, I instead use `definitely-not-an-ad-subdomain.dastx.me`.
When it comes to adblocking this is an issue because adblocking lists are usually based on a blacklist. They'll have `*.adgiant.com` on the list but not `definitely-not-an-ad-subdomain.dastx.me`, thus my ads will start working. We could of course ad every subdomain we come across to the blacklist, but suddenly our adblock list doubles, triples, quadruples or more.
What adblocking software do now, is they do a dns lookup for every domain, and consider all domains in the result as the same. So if either of previous domains are in the block list, both domains are considered blocked.
This CNAME method is also a huge security issue, but I'm not gonna go into that.