Thales S. Teixeira
Lumry Family Associate Professor of Business Administration
Thales Teixeira is a faculty in the Marketing Unit. He holds a Ph.D. in marketing from the University of Michigan. He earned a bachelor’s degree in business administration and master’s degree in statistics at the University of São Paulo, Brazil. Before joining HBS, Professor Teixeira was an independent quantitative marketing consultant to technology and financial services companies, among them Microsoft, HP, and Prudential. He researches the Economics of Attention.
His research domain comprises advertising, digital marketing and The Economics of Attention – i.e., the market principles of how to buy, sell, capture and use consumer attention effectively to acquire, and engage consumers in order to build brands cheaply. Recent cases, keynotes and media mention on these topics follow:
Recent HBS Cases: Best Buy, Dropbox, Coca-Cola, YouTube.
Recent keynotes: Unilever, National Retail Federation Week, Cannes Lions.
Recent Media Mentions: New Yorker, The Economist, Forbes, McKinsey & Co.
Recent in-company engagements: Facebook, Disney, Paramount Pictures.
When People Pay Attention to Video Ads and Why
For advertising to work, it has to attract attention before it does anything else. That task is much more complicated and expensive than in past because people’s attention spans are shorter and more brands compete for attention. Today’s marketers must think in a two-step model: Entertain people to grab their attention; only then turn to your advertising needs by providing relevant information. Marketers should start their media buying strategy by understanding the attention potential of each media and context—only then will they know how much time and effort to spend on each step.
> Full article
While the Internet's first wave of disruption was marked by the unbundling of digital content, the second wave, decoupling, promises to generate more casualties in an even broader array of industries. Digital start-ups are disrupting traditional businesses by inserting themselves at every juncture in the customer's consumption chain. By decoupling—the act of separating activities that people are used to co-consuming—new digital businesses are disrupting retailing, telecom and other industries. This article explain decoupling and how incumbents can fight back.
> Short (online) article
> Long (full) article
TV Advertising and Online Shopping
Mind the Attention Gap
Thales Teixeira, Harvard Business School professor, talks to McKinsey partner Dave Edelman about how companies need to focus on attention when thinking about advertising.
> McKinsey Marketing and Sales
The Rising Cost of Consumer Attention
Attention is a necessary ingredient for effective advertising. The market for consumer attention (or “eyeballs”) has become so competitive that attention can be regarded as a currency. The rising cost of this ingredient in the marketplace is causing marketers to waste money on costly attention sources or reduce their investment in promoting their brands. Instead, they should be thinking about how to “buy” cheaper attention and how to use it more effectively. Research in the emerging field of the Economics of Attention shows how this can be achieved.
Why, When and How Much to Entertain Consumers in Advertisements?
Can you have too much entertainment in an ad? The data suggests it’s possible. In this study, in partnership with colleagues from the MIT Media Lab, we used facial tracking technology to evaluate the impact that different levels of entertainment in TV ads had on consumers’ nearly 5000 ad viewing and purchasing decisions. There is much evidence that the presence of positive forms of entertainment (e.g., content that is clever, humorous, creative) in TV advertisements can increase the effectiveness of the ads by making them both more attractive and more persuasive. We found, however, that too much (or misplaced) entertainment, can actually be detrimental to the persuasiveness of the ad. By explaining why, when, and how much to entertain consumers, we identify how advertisers can maximize the persuasiveness and effectiveness of their advertising in order to increase sales.
> Academic paper > Summary article > Marketing Science
How to Profit from “Lean Advertising”
This article introduces the concept of Lean Advertising, i.e., how to use non-traditional approaches to create and distribute advertising using extremely low-cost tools on the Web. A framework for Lean Advertising is proposed that identifies the four ways in which companies can execute marketing campaigns with low budgets.
CHINESE VERSION: http://www.hbrchina.org/2013-06-05/112874458.html
Viral advertising has come to mainstream marketing with the promise of saving on ever increasing media costs, as well as higher customer engagement via word-of-mouth effects. Here, I summarize the findings of a recent stream of my eye- and face-tracking research on what makes consumers most willing to engage with and share ads. If brands expect to replace paid media (e.g. TV), as distributors of commercial content, with consumer sharing, they will have to provide incentives: monetary or not. I show how viewers who send ads that go viral in their social networks desire to be rewarded with ‘social capital' in the process. If done right, this “advertising symbiosis” can benefit both brands and consumers.
Live interview on "THE NEW SCIENCE OF VIRAL ADS"
Thales Teixeira, Harvard Business School professor, explains what makes us want to watch—and share—certain commercials. For more, go to the article The New Science of Viral Ads.