Hi Vince, thanks for reaching out! You can use the following link to report ads that you find inappropriate on YouTube: http://goo.gl/KcTgwH . We'll have our team look into it!
When something is flagged or reported, it’s not automatically taken down. A flag just means we'll review the video and content will only be removed if it violates our Community Guidelines: https://goo.gl/KYov87 . Hope this helps clarify.