Real-time feedback performed during a quantum nondemolition measurement of atomic spin-angular momentum allowed us to influence the quantum statistics of the measurement outcome. We showed that it is possible to harness measurement backaction as a form of actuation in quantum control, and thus we describe a valuable tool for quantum information science. Our feedback-mediated procedure generates spin-squeezing, for which the reduction in quantum uncertainty and resulting atomic entanglement are not conditioned on the measurement outcome.