I think they're talking about things like WhatsApp, Instagram, and SnapChat.
If you had asked me about each of them before I'd heard of them, I would have told you that they are all solved problems. That SMS, email, and the existing photo-sharing apps are "good enough".
However, these companies are apparently solving people's problems (hence the large userbase for each), even if I personally don't use them and don't quite understand the value proposition that each provides.
What are these magical markets invented by oh-so-spry out-of-box-thinking unburdened-by-reality type of kids?