We went to New Orleans for the weekend and exchanged cards.
DH and I would rather invest in memories together, and not 'stuff' - but neither one of us are sentimental when it comes to material items, so they don't do much for us. So instead, we made a vow to 'escape' each anniversary somewhere (even if its the Marriott up the road for one night). We jetted to New Orleans for a weekend, had nice dinners out, shopped together and bought things for our home, etc.
For our second anniv, which was 2 months ago, we went out of town again to Dallas, attended the Josh Groban concert, shopped and dined out.
Traditional gift is paper, if I remember right. If your man is a sentimental guy, you could put together a scrapbook of all the reasons why you love him, or buy him tickets for his fave team, have pictures made for him or schedule a photo session, etc.
Good luck finding the perfect way to celebrate =)