Propaganda War is an important tool in the Terror Doctrine. The ability brings a reticule onto the screen, which is used to target infantry for retreat. This ability will work on any type of Allied infantry and any number as long as they fall into the reticule. For a fair sum of one hundred munitions, this ability instantly thins out any allied blob by sending them back to their base.
"Superior Propaganda efforts demoralise Enemy Troops forcing a retreat to their HQ area."
This ability has multiple uses. A very common use is for sending infantry squads back to their base when they are capping critical point such as a VP or a strategic point. Another common use is to send units that are flanking a point, running home to mommy. When an attempt to flank a bunker occurs, one could use this ability on the approaching flame engineers to ruin any attempt for a successful flank. Another use of this ability is to save a squad or vehicle. If a sniper is in trouble, one can use this to retreat the enemy squad and keep the sniper fighting another day. Or, if a KT is one RR shot away from being destroyed, use Propaganda War to save the tank, and fall back for repairs.
A really nasty trick is to use this on a large infantry blob and target the enemy base the infantry are running to with neblewerfers or walking stukas; this will decimate the entire force and the infantry can't escape, or will escape heavily damaged. This may even demoralise an opponent so badly he may quit outright. The Terror Doctrine lives up to its name.
This ability is bugged. When an enemy squad is engaged in an action, like throwing a sticky bomb or a satchel charge, it will throw the item first, and then it may or may not retreat. So if you see a blob of rifles heading towards a damaged Panzer IV, retreat them as soon as you see them or it might be too late!