An 'old media' guy said that.
He's viewing social media through a traditional TV/Radio Advertising lens instead of a Networking/Relationship lens.
I can attribute more than half of my business to referrals from people I am actively engaged with in social media.
Social Media is nothing more than building, nurturing, and maintaining relationships.
That same old media guy can probably rattle off lots of business he's gotten from building relationships at places like Chamber of Commerce mixers and other networking events. Social Media is the same activity, just in a different medium using different tools.
The most important word in social media is social. It's about real people, real relationships, and real conversation.