Blatter said: "I am not at all happy with the way we fought against racism."
He also revealed he spoke with Russia's President Vladimir Putin at Sunday's final between Germany and Argentina in Rio about making the issue a priority at the 2018 World Cup in Russia.
Blatter also gave his reaction to Uruguay striker Luis Suarez's four-month ban from all football-related activity for biting Italy's Giorgio Chiellini.
He said: "As a footballer I feel that such a punishment it hurts, it hurts. But as the president of FIFA I have to accept the decisions that are taken by our independent committees.
"I do hope that this player will come back to football because on the pitch what he has shown so far before his elimination -- I have seen his capacity technically and tactically and his smelling towards goals -- I do hope he will be back.
"He is now in one of the greatest clubs in the world and I am sure he will have a good place there and he will confirm his position."