Alan James, the chief executive of the Outdoor Advertising Association, said: "This is a step in the right direction but it is regrettable that councils have had to go to this level. It is sad but it is the only way to encourage advertisers to be more responsible."
Camden Council estimated the two record companies were saving more than £8 million a year on marketing by flyposting in the borough.
The council said the behaviour orders, which could result in five years' jail for the individuals, followed complaints from local businesses and residents.
James said the move had been likely for some time and that the Advertising Association, IPA and ISBA had been warning members to steer clear of flyposting.
"It's considered smart and clever but if you lived there (in Camden), and saw the devastation it caused, you wouldn't think it was clever," he said.
The three executives served with orders are the Sony Music Entertainment managing director, Catherine Davis; its marketing director, Joe Headland; and the BMG executive, Lucy Hansford, according to reports.
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