@SusanWojcicki @YouTube an algorithm takes a look at uploaded videos to figure out if they are family-friendly and often demonetizes the video (even if it is family-friendly). Why does no algorithm control the ads? There are many ads which aren't family-friendly.
Advertisers choose the ad format & content they want to target during campaign set up. You can also block specific ads from appearing on your channel: https://yt.be/help/8u1N . You can also report the ad for review here: https://yt.be/help/6f5j . Hope this helps!