On January 19, 2004, Dean's rivals John Kerry and John Edwards pushed him into a third-place finish in the 2004 Iowa Democratic caucuses, representing the first votes cast in primary season. Dean's loud outburst in his public address that night was widely rebroadcast and portrayed as a media gaffe that ended his campaign.
Dean conceded that the speech did not project the best image, jokingly referring to it as a "crazy, red-faced rant" on the Late Show with David Letterman. In an interview later that week with Diane Sawyer, he said he was "a little sheepish ... but I'm not apologetic." Sawyer and many others in the national broadcast news media later expressed some regret about overplaying the story. CNN issued a public apology and admitted in a statement that they might have "overplayed" the incident. The incessant replaying of the "Dean Scream" by the press became a debate on the topic of whether Dean was the victim of media bias. The scream scene was shown an estimated 633 times by cable and broadcast news networks in just four days following the incident, a number that does not include talk shows and local news broadcasts. Some in the audience that day reported that they were unaware of the "scream" until they saw it on TV. Dean said after the general election in 2004, that his microphone only picked up his voice and did not also capture the loud cheering he received from the audience as a result of the speech. On January 27, Dean finished second to Kerry in the New Hampshire primary. As late as one week before the first votes were cast in Iowa's caucuses, Dean had enjoyed a 30% lead in New Hampshire opinion polls; accordingly, this loss represented another major setback to his campaign.
Following Dean's withdrawal after the Wisconsin primary, he pledged to support the eventual Democratic nominee. He remained neutral until John Kerry became the presumptive nominee. Dean endorsed Kerry on March 25, 2004, in a speech at The George Washington University in Washington, D.C.
On March 18, 2004, Dean founded the group Democracy for America. This group was created to house the large, Internet-based organization Dean created for his presidential campaign. Its goal is to help like-minded candidates get elected to local, state, and federal offices. It has endorsed several sets of twelve candidates known as the Dean Dozen. Dean turned over control of the organization to his brother, Jim Dean, when he became Chairman of the Democratic National Committee.
Supporters of Dean were angry that he was not given a position in the new Obama administration and not invited to the press conference at which Tim Kaine was introduced as his successor as Democratic National Committee chairman. Joe Trippi, who was Dean's presidential campaign manager in 2004, told Politico, "[Dean] was never afraid to challenge the way party establishment in Washington did business, and that doesn't win you friends in either party." Trippi further explained the apparent snub of Dean by stating, "You don't have to look any further than Rahm Emanuel." Trippi was referring to the tension between Emanuel and Dean over Dean's 50 state strategy. Sources close to Emanuel dismissed these charges.