Dozens gathered at the Tollbridge for the memorial at 1.22pm.
Wreaths were laid at the crash site while eleven white doves were released, each representing one of the 11 men who died in the worst British airshow disaster for more than 60 years.
A short memorial service was led Rev Canon Ann Waizeneker who read out each of the names of those killed.
Leading those gathered in prayer, she said: "God our refuge and strength. Close at hand in our distress.
"Meet us where we are and lift our eyes to the peace and light of your constant care."
She also paid tribute to those who helped in the aftermath of the crash.
She said: "We remember too, with thanks, the work of emergency services and all who offered their help and support on August 22nd 2015 and the weeks and months following."
Church bells tolled following the memorial.
Nearby St Nicholas church also opened its doors to let mourners light candles and pray.
A full report into the crash is expected to be released by later this year while this year's Shoreham Airshow was cancelled out of respect for victims and their families.