What is the overt message and how do we know?
The overt message is that making products with oil and competition between oil companies both promote the wellbeing of a society. This is demonstrated through the alien's praise of American society for making products with petroleum and allowing competition in the oil industry.
What is the covert message and how is it known?
The covert message is that oil use and oil competition equates to patriotism and anti-petroleum industry sentiments equate to communistic thinking. The use of petrol is noticeably paraded as a distinctly American achievement, while the alien leader, who opposes the competition between oil companies, is personified as a communistic dictator. Before the Martian society is introduced to oil, everyone looks and acts like one another (a reference to communist society). After being introduced to oil, they diversify and begin to resemble American society, and subsequently are made to look much happier.
How is it propaganda?
This video is propaganda because it contains a hidden, covert message that isn't communicated on the surface level. It also uses propaganda techniques, such as transfer (patriotism -> oil), to get across its message.
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