Propaganda was a system used by various governments to sway the opinions of the public in their favor.
Nearly all major governments, including the Galactic Republic, Confederacy of Independent Systems, Rebel Alliance, and the Galactic Empire, made use of propaganda. Ahalas Svindren, Ull Haber, and the mysterious "Ryloth Resa" were propagandists active during the Clone Wars. The Rebel Alliance used the Destruction of Alderaan as anti-Imperial propaganda, and the Republic used the exploits of the Jedi hero Anakin Skywalker as propaganda.
A propaganda poster was a type of a placard or advertisement used by governments to transmit propaganda messages—such as justifying involvement to its citizens, ensuring recruitment or procuring money and resources to sustain the war effort. The Rebel Alliance made use of such placards during the Galactic Civil War.
During the Empire Day festivities of 1 ABY, Brenn Tantor employed Imperials to tear down Rebel propaganda posters which proclaimed "Remember Alderaan" and put up posters which promoted the Empire. The Rebels struck back by graffiti-tagging the Imperial posters.
In some cases, propaganda can also be used to record events in such a manner that make it seem as though a faction actually won when they really lost. A notable example of this was the holofilm Sacrifice at Endor, which depicted the Battle of Endor in a pro-Imperial light, indicating that the Rebels created the Death Star II and that the Empire tried to stop it, with Vader and Palpatine giving their lives to destroy the weapon (which if anything, was the exact opposite of how the battle actually played out). It was done well enough that even the New Republic Ace Pilot Wedge Antilles, who was a veteran of the battle and thus knew the truth of how it transpired, nonetheless viewed it as being just as compelling as the history.
In some cases, propaganda can also be used to make a person, namely a leader more appealing in appearance than he actually is, which is often done by state-run media. In the Imperial Handbook: A Commander's Guide, the picture of Palpatine depicted him in his Clone Wars-era appearance while listing him as the Emperor at the time the image was taken, although it nonetheless showcased his true appearance near the end of the book.
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