Isn’t propaganda just a form of persuasion? What about propaganda separates it from advertising or interpersonal communication?
Edit: Not all propaganda involves lying. For some reason, we seem to be more comfortable with a person lying to us than we are with viewing a propaganda poster that uses verifiable facts.
Edit 2: Another interesting note is that in some countries, propaganda is not viewed negatively like it is in English speaking countries.
I think this is a big part of it. We expect companies to lie in their advertisements, but we trust our government institutions, so government propaganda feels like a betrayal of trust.