1. A “social graph” is the measurement of the size and influence of a social network
  2. Interface your social network with a given website
  3. Your social graph determines advertisements’ price per click and benefits such as offers, discounts or credits

Q. Is the idea to use the social graph API to appropriately price advertising on a page based on its popularity?

A. No, the idea is to use the popularity of a person to determine the price of the advertising they see.

Q. So the combined reach and impact of a person based on their twitter/blog/myspace/facebook etc is what determines their worth to advertisers?

A. Yes.