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Same, I've only seen two ads since they started rolling them out. The first time, you could report them as spam, so I did so. The second time, months after that, I reported it as offensive.

It might not make any difference, but I can say that compared to most people I know that use Instagram, I get almost no ads, the last one being three months ago.

I noticed a change in the last few days too. It went from one or two ads each session to one ad every few photos :/

I wonder if they have some system in place to notice and counter-act this.

Perhaps, but in today's world if you tell a company you find something offensive they're likely to listen (for fear of PR fallout). Admittedly, I find all ads offensive (to my time) so it's disingenuous but it works—for now—so I'll keep doing it.