- Edited
Forgot to mention a few things.
There are some hardcoded internet comms that are built into AOSP that connect to google and others than can give away identifiable info about the user. In graphene OS as well as a few other privacy OSes these have been removed and replaced with better options.
- dns
- gps (supl)
- time servers
- internet connectivity servers
- ? ...etc
Also the main issue in privacy is not "ads". Its being "identified" and "tracked" and have data gathered and built-up on you and associated with new things you do. The idea is to curtail this.