The billboards, in Auckland and Wellington, promoted Madmen: The Glory Years of Advertising.
They bore the slogan: "Advertising Agency Seeks: Clients. All business considered, even from Jews."
The advertising campaign was meant to highlight some of the shocking attitudes of the 1960's.
Prime's Director of Communications Tony O'Brien says the campaign was trying to reflect the new American comedy, 'Madmen: The Glory Years of Advertising'.
He says the series deals with archaic attitudes like sexism, smoking, drink driving, racism and the stigma that is attached to divorce.
O'Brien said Prime TV was sorry the advertising caused offence.
He says he is not sure whether the new programme will do the same, and is waiting until it is launched.
Jewish Council chairman Geoff Levy says the wisdom of the entire project defies belief.
Levy says Prime removed the billboards quickly and if the council received a written apology and a two-page apology in the next issue of Time, the matter would be resolved.