That's why I like to use the clicker-it's fast. His eyes will be on that treat again if you move your hand. Repeat steps 1 - 5 again. He may glance back and forth quickly with his eyes between you and the treat. Be very patient.
Some dogs are persistent about staring at the treat.
The payoff is in looking to the handler. Next time, wait a half-second before clicking his attention. Require that he look at your eyes steadily for a brief moment before marking and reinforcing the behavior. Each time you play the game, wait a little longer and a little longer before you mark the behavior. Count the seconds in your head.