Not true. In spanish, "ad" is usually anuncio, or sometimes comercial or publicidad. Propaganda can also be used, but is less common than those i think, I've never heard it used.
I once read an original edition of Bernays' Propaganda (1928) with its title in a jaunty typeface on the cover, before the word had a negative connotation.
At least in Portuguese and Spanish, both advertisement and propaganda are simply "propaganda".