Hughes became the first woman president in the AA's history in 2005 and is a former marketing director and president of Coca-Cola UK.
The Advertising Association said Hughes has pushed for stronger self-regulation of on-line advertising, while delivering enhanced social responsibility through her support for government partnerships such as business4life, which is hosted by the Advertising Association.
Hughes said: "It is an enormous honour to be recognised in this way. I am immensely proud of the contribution of the creative industries not only to the UK economy, but also to our culture and society.
"As president of the Advertising Association, I have been privileged to lead the industry and to work to protect and promote the rights and responsibilities of advertising."
Other media and marketing industry figures to receive honours included Helen Alexander, the president of the CBI and former chief executive of The Economist Group, and PPA chair from 2006 to 2008.
Alexander was made a Dame Commander of the British Empire (DBE).
The automotive industry was well represented by CBEs for Joseph Greenwell, chairman of Ford of Britain, and Christopher Parfitt, chairman and chief executive of General Motors UK.
Tamara Ingram, the former chief executive of WPP advertising agency Grey, and more recently the chair of tourism body Visit London, was recognised for her services to tourism with an OBE. Ingram is currently heading up Grey's Procter & Gamble account.
Former Carat associate director turned fashion entrepreneur Nick Robinson, the chief executive of Asos.com, was awarded an OBE for services to the fashion industry.