Technically, Social Media is anything that allows people to connect, converse and, evidently, socialise online or (I guess by phone). In practice, this means such things as Facebook, MySpace, Twitter, YouTube and the like. Like minded people finding common interests online.

In terms of your friend, therefore, I guess the debate is around how the Olympics can be taken beyond the traditional televisual or live audience and how it can be used to inspire youth, in particular, but also others. Bear in mind, for example, that the internet is the fulcrum for public protest - a bad result might be that the Olympics gets swallowed by pro-Tibet protests, or equally that might be a good thing depending on your point of view.